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Fly News Breaks for February 27, 2020
Feb 27, 2020 | 06:07 EDT
JPMorgan analyst Domingos Falavina upgraded StoneCo to Overweight from Neutral with a price target of $48, up from $43. The upgrade reflects the analyst's reduced cost of equity estimates driven by lower Brazil credit default swaps and the recent correction in the shares. Further, Falavina has "growing optimism" on StoneCo's lending potential. This new revenue stream could "substantially increase economics to Stone," the analyst tells investors in a research note. Falavina believes current clients already being serviced by Stone present an additional 75% of EBT-equivalent upside if the company were able to cross-sell to all its clients.