StoneCo upgraded to Buy from Neutral at Citi

Citi analyst Gustavo Schroden upgraded StoneCo (STNE) to Buy from Neutral with a price target of $15, up from $9. Everyday, the company is one step closer to be a “small-sized bank” with potential higher return on equity, the analyst tells investors in a research note. The firm says that even considering the higher interest rates for 2025, StoneCo’s guidance contemplates earnings expansion of 11%, driven by re-pricing. As Citi anticipates a lower rate for 2026, it believes that this could be a tailwind for results.