Citi Upgrades StoneCo (STNE) to Buy with Optimistic Outlook | STNE Stock News

Apr 22, 2025

Citi analyst Gustavo Schroden has upgraded the stock rating of StoneCo (STNE, Financial) from Neutral to Buy, significantly increasing the price target from $9 to $15. According to the analyst, the company is gradually evolving towards becoming a "small-sized bank," which could potentially lead to higher returns on equity.

Schroden's assessment takes into account StoneCo's strategic re-pricing efforts which are expected to drive an 11% earnings expansion, despite the forecasted higher interest rates for 2025. Furthermore, Citi's projection of lower interest rates for 2026 is anticipated to provide a favorable boost to StoneCo's financial results, enhancing their growth outlook.

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