StoneCo upgraded to Buy from Neutral at UBS

UBS upgraded StoneCo to Buy from Neutral with a price target of $17, down from $21. The analyst cut estimates to reflect higher for longer interest rates but believes the company’s fundamentals continue to improve, supported by the bundle offering with banking. Additionally, the stock’s recent underperformance provides an attractive opportunity, as the shares are down 30% since the Q1 results, the analyst tells investors in a research note. UBS sees StoneCo further advancing in its core business, in line with its strategy to become the main financial provider for small businesses in Brazil.