Citi analyst Felipe Gaspar Salomao upgraded StoneCo to Buy from Neutral with a price target of $42, up from $27. Meetings with industry participants indicate that Rede's free prepayment of single installment credit transactions offering to merchants did not significantly change competitive dynamics in the industry, Salomao tells investors in a research note. The consensus view is that competitors have matched Rede's offering on a take rate basis in the weeks after the free prepayment announcement, and since then pricing strategies have turned more rational, adds the analyst. He finds it surprising that most acquirers he spoke to believe they have gained market share over the past months, suggesting Rede did not significantly outgrow competitors, despite all its efforts. Salomao sees good carrying gains for investors that decide to hold StoneCo due to fast net income growth.