What happened
Shares of StoneCo (NASDAQ: STNE) jumped on Friday, rising as much as 7.6%. But by the time the market closed, the financial technology company's stock was up 5.5%.
Most likely, the growth stock's gain is primarily due to an analyst's upgraded rating.
Image source: Getty Images.
So what
Credit Suisse analyst Daniel Federle gave StoneCo stock an outperform rating, up from a neutral rating previously. In addition, Federle gave the stock a 12-month price target of $100. This price target implies 14% upside from where the stock closed on Friday.
StoneCo's most recently reported quarterly results showed third-quarter revenue rising 39% year over year as total payment volume on its platform soared 114%.
Now what
In the company's third-quarter shareholder letter, StoneCo CEO Thiago Piau said the company is still in its beginning stage.
"Even though we are happy with our growth trajectory we think that we are still far from our potential and therefore we will keep investing heavily on technology, team development and channel distribution as we see ourselves still in the early days of our business," explained Piau.
10 stocks we like better than Stoneco LTD
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Stoneco LTD wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of November 20, 2020
Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of Stoneco LTD. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
