STNE Should I Buy
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StoneCo Ltd (STNE) is not a strong buy at the moment for a beginner investor with a long-term horizon. While the company has shown some positive growth in revenue and gross profit, the recent financial performance, negative market sentiment, and technical indicators suggest caution. The stock may be worth monitoring for future opportunities, but it is not an ideal entry point right now.
The MACD is negatively expanding, RSI is neutral at 23.943, and moving averages are converging, indicating no clear bullish trend. The stock is trading near its S1 support level of 13.959, with resistance levels at 15.56 and 17.161.
BTIG initiated a Buy rating with a $22 price target, citing strong growth potential in the Brazilian market and attractive valuation. The company is expanding its merchant relationships and pursuing share buybacks.
The stock dropped significantly (18.7%) after Q4 earnings despite beating expectations, due to concerns over future profitability. Revenue growth is slowing, and net income and EPS have declined significantly YoY. Analysts have lowered price targets, and Grupo Santander downgraded the stock to Neutral.
In Q4 2025, revenue increased by 3.21% YoY to R$3.73 billion, but net income dropped by -117.10% YoY to R$499.96 million. EPS also fell by -118.34% YoY to R$1.83, and gross margin slightly decreased to 75.53%.
Analysts are mixed, with recent ratings including a Buy from BTIG with a $22 target, a Buy from UBS with a reduced $19.50 target, and a downgrade to Neutral from Grupo Santander with a $21 target. Goldman Sachs also lowered its target to $19 while maintaining a Buy rating.
