- StoneCo (STNE +21.8%) shares rally to their highest in more than two months after reporting better than expected Q1 revenues.
- "A combination of their quick pivot to enabling e-commerce for their merchants - coupled with a footprint in less affected regions - is enabling a faster than expected recovery," Susquehanna analyst James Friedman writes.
- StoneCo's e-commerce volume in May already has returned to 87% of what was seen before the coronavirus, and analysis suggests volume may be growing nearly 80% Y/Y, Friedman says in remaining Neutral on the stock while raising his price target to $34 from $28.
- Goldman maintains its Buy rating while lifting its price target to $32 from $28, saying "while the bottom line was weaker than expected, we were positively surprised by volumes already increasing 9% in April and 23% so far in May."
- Morgan Stanley, which rates the stock at Overweight with a $30 target, says transaction payment volume "resilience shines" and expects market share gains to drive "attractive growth" at StoneCo and Brazilian peer PagSeguro (PAGS +8.1%).