StoneCo price target raised to $22 from $19 at Evercore ISI

Evercore ISI analyst Sheriq Sumar raised the firm’s price target on StoneCo to $22 from $19 and keeps an Outperform rating on the shares. StoneCo posted another strong quarter, beating consensus estimates on pre-tax margin as it continues to deliver on cost efficiency along with double digit revenue growth, the analyst tells investors in a research note. The firm believes the Street is underestimating StoneCo’s margin growth potential amid several cyclical and secular tailwinds, including rising payment digitization in Brazil, cross selling across payments banking and software, operating efficiency, and declining interest rates in Brazil.