2024-06-17 11:39:19 ET
Summary
- StoneCo is diverging from its fintech origins, and is more like a bank with each quarter.
- Facing challenges with increasing non-performing loans. Investors should keep an eye on this.
- Paying 10x forward profits seems cheap, but details matter.
Investment Thesis
I believe I'm one of the few analysts on Seeking Alpha that in 2024 doesn't have a BUY rating on StoneCo ( STNE ). My rationale with StoneCo is that it's a bank. And a bank carries a bank-like multiple. Not a fintech-like multiple....
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For further details see:
StoneCo: Stirring Waves In Banking