STNE - StoneCo Stock: It's Just Getting Started

2024-04-10 23:12:52 ET

Summary

• StoneCo's strong recovery prospects are supported by its cheap valuation, strong business growth, and expansion in the Latin American market.
• The company's Q4 FY2023 financial report showed increased margins, market share expansion, and healthy growth in its payments business.
• As the company's margins have increased and the stock has barely moved due to some misunderstanding, STNE's valuation has become more attractive.
• By my calculations, STNE has an upside potential of more than 36% from the current price if we continue to see margin expansion and business growth through 2024.
• I want StoneCo to continue to grow faster than the market - that trend must continue for the potential I've calculated to be realized. I believe in this, and therefore reiterate my "Buy" rating today.

Intro & Thesis

You are reading my 4th article about StoneCo Ltd. ( STNE ). In my previous articles , I have consistently concluded that STNE has excellent recovery prospects because the company is cheap, its business continues to grow strongly, and the Latin American market remains interesting in terms of TAM (total addressable market) expansion and macro prospects. So far, the bullish thesis has worked well:

For further details see: