StoneCo price target raised to $20 from $19 at Citi

Citi analyst Gabriel Gusan raised the firm’s price target on StoneCo to $20 from $19 and keeps a Buy rating on the shares. The firm sees short-term trends for the payments industry as the most favorable within its non-banks coverage, which it expects will attract investor attention. Citi continues to rate Stone as its top pick in the payments sector. The analyst sees positive momentum for the company, saying the combination of lower rates, expense control and “low ranging fruit on the top-line” provide favorable conditions for profitability expansion. The announcement of board changes has created a buying opportunity as a change in strategy is unlikely, the analyst tells investors in a research note.