From Financial Modeling Prep: 2024-12-27 12:51:00

UBS analysts reiterated a Buy rating and $12.50 price target for StoneCo (NASDAQ:STNE), praising the company’s credit business improvements despite economic challenges. StoneCo’s credit strategy, with daily amortization and risk management, sets it apart in a tough lending market. UBS projects a credit book of R$3.1 billion by 2027, lower than StoneCo’s guidance due to cautious macroeconomic conditions.

The recent 210 basis points increase in the yield curve may lead to higher funding costs for StoneCo, impacting short-term financial performance. However, UBS remains optimistic about the company’s long-term growth potential due to its strong credit strategy. StoneCo’s unique approach to risk management and operational guidelines position it well in a competitive lending landscape.



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