StoneCo upgraded to Buy from Neutral at BofA

BofA upgraded StoneCo to Buy from Neutral with a price target of $17, up from $13. The company’s increased sense of urgency on costs “should yield better results this time,” the analyst tells investors in a research note. The firm says the successful execution of StoneCo’s strategy is expected to deliver net income growth of 31% annually from 224 to 2027, supported by solid sales growth and operating leverage, which is well above consensus estimate of 10%. It believes the company’s 2024 guidance is credible and upgraded the shares on increased earnings estimates.