STNE - StoneCo Stock Has 44% Upside According to 1 Wall Street Analyst
2024-04-22 15:42:03 ET
StoneCo (NASDAQ: STNE) stock is in something of a funk. Trading down roughly 84% from its pandemic-era highs, the Brazilian fintech stock doesn't get a lot of respect on Wall Street. Despite reporting its most profitable year ever in 2023, with $328 million in net income, StoneCo share prices are up only about 30% over the past year -- not a whole lot better than the S&P 500 's 21% gain.
Better things could be coming for StoneCo investors, however. On Friday, Susquehanna Financial changed its price target on the stock from $23 to $22 a share, while maintaining its "positive" rating. Yes, the analyst lowered its price target, but if it's right about that, StoneCo shares could gain more than 44% over the next year or so.
Susquehanna noted that it was adjusting its price target primarily in response to StoneCo's press release earlier in the week that advised investors of a change in how the company accounts for membership fees paid to it by merchant customers. Specifically, instead of booking these fees as revenue immediately upon payment, StoneCo will begin stretching out these fees across the "expected lifetime" of merchant contracts.
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StoneCo Stock Has 44% Upside, According to 1 Wall Street Analyst