Digital Payments And Financial Inclusion Will Unlock Brazil Market Potential

The upward revision in StoneCo’s price target primarily reflects a lower discount rate, which more than offsets slightly reduced revenue growth expectations, resulting in a new consensus fair value estimate of $19.06. What's in the News Raised 2025 gross profit guidance to over BRL 6.3 billion, implying 14.5%+ year-over-year growth.

The increase in StoneCo’s consensus price target reflects a sharply lower future P/E ratio, indicating improved earnings expectations, while a modest decline in the discount rate further supports a higher fair value, now at $17.64. What's in the News StoneCo raised 2025 earnings guidance, now projecting over 14.5% gross profit growth and updating EPS growth from 18% to 32%, driven by share buybacks and stronger net income.

Despite a modest decline in consensus revenue growth forecasts, StoneCo's significantly lower future P/E implies improved expected profitability, supporting an upward revision in the consensus analyst price target from $16.43 to $16.94. What's in the News StoneCo raised full-year 2025 guidance, now expecting gross profit growth above 14.5% and gross profit to exceed BRL 6.3 billion.

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

AnalystConsensusTarget has decreased profit margin from 25.7% to 22.2% and increased future PE multiple from 4.8x to 5.6x.

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

AnalystConsensusTarget has decreased shares outstanding growth rate from -0.1% to -0.1%.

AnalystConsensusTarget has increased revenue growth from 11.8% to 13.6%, decreased profit margin from 25.6% to 19.2%, increased future PE multiple from 5.4x to 7.6x and increased shares outstanding growth rate from -0.1% to -0.1%.