StoneCo upgraded to Overweight from Neutral at JPMorgan

JPMorgan analyst Yuri Fernandes upgraded StoneCo to Overweight from Neutral with an unchanged price target of $20. The analyst cites the company’s “appealing” earnings potential and “discounted” valuation for the upgrade. The shares are down 20% since the earnings results, which were “polluted by several one-off items” but overall in line with estimates, the analyst tells investors in a research note. The firm says that while “higher-for-longer” Selic is not great for the sector, payment names are less dependent to rates, and a Stone re-rating depends mostly on banking deliveries rather than macro environment.