Update shared on13 Oct 2025
Fair value Increased 0.068%StoneCo's analyst price target has been raised from $15 to $25, as analysts cite ongoing capital generation, planned shareholder buybacks, and updated earnings estimates as key drivers for the upward revision.
Analyst Commentary
Recent analyst activity on StoneCo reflects a largely positive outlook, with several firms raising their price targets and maintaining Buy ratings. While the consensus skews bullish, the commentary highlights both optimistic drivers and ongoing considerations related to StoneCo's valuation and execution.
Bullish Takeaways- Bullish analysts have raised their price targets significantly, reflecting increased confidence in StoneCo's long-term prospects.
- The company's ability to consistently generate excess capital is seen as a key strength and supports shareholder-friendly initiatives like substantial buybacks.
- Analysts are raising earnings estimates for the next two fiscal years, citing operational improvements and robust financial performance.
- Despite strong share price gains of approximately 120% year to date, analysts continue to view StoneCo's valuation as attractive relative to its growth potential.
- Some analysts remain watchful of StoneCo's ability to sustain its current capital generation and shareholder return activities over the medium term.
- The rapid price appreciation may lead some investors to question the stock's upside potential from current levels.
- Cautious analysts highlight that further revisions to earnings estimates will be closely tied to execution in upcoming quarters.
What's in the News
- StoneCo has raised its 2025 guidance, projecting gross profit to exceed BRL 6.3 billion with more than 14.5% year-over-year growth (Key Developments).
- The company upgraded its expected 2025 EPS growth to 32%, up from 18%. This outlook is supported by accelerated buybacks and robust net income performance (Key Developments).
Valuation Changes
- Fair Value has risen slightly, moving from $19.06 to $19.08 per share.
- Discount Rate has decreased subtly, moving down from 7.74% to 7.68%.
- Revenue Growth estimate has fallen marginally, declining from 7.44% to 7.33% expected annual growth.
- Net Profit Margin projection has dropped significantly, from 28.23% previously to 20.67%.
- Future P/E ratio forecast shows a substantial increase, changing from 1.06x to 8.01x.
Disclaimer
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