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What Makes StoneCo (STNE) Amongst the Best Names in Payment Processing

StoneCo Ltd. (NASDAQ:STNE) is one of the 10 best payment processing stocks to buy now. The stock has been getting mixed ratings from analysts in recent weeks. Despite that, it offers more than 38% upside potential to investors, based on its 1-year median target price. The stock also carries a moderately bullish consensus sentiment, with 5 of the 8 analysts who provided coverage assigning Buy ratings.

On May 29, UBS upheld its Buy rating for the stock, while cutting down the firm’s price target from $19 to $17. Despite the downward revision, UBS’s projection offers 51% upside potential at the prevailing level.

Pachai Leknettip/Shutterstock.com

In mid-May, Citi lowered the rating on StoneCo Ltd. (NASDAQ:STNE) from Buy to Neutral and decreased the price target from $18 to $11. The firm also placed a downside 90-day catalyst watch on the stock.

The firm noted that the recent price adjustments implemented by StoneCo will result in a curtailment in volumes. Furthermore, Citi expects intensifying competitive pressures to cause a weakness in the company’s take rates. The firm believes current trends in the payments sector highlight the vulnerability of independent merchant acquiring business models.

StoneCo Ltd. (NASDAQ:STNE) sells financial technology and software solutions to merchants and integrated partners across in-store, online, and mobile channels in Brazil. The company provides financial services, payment solutions for electronic payments and alternative payment methods, digital products, and tap-on-phone solutions. The company serves offline, online, and omni-channel sales customers.

While we acknowledge the risk and potential of STNE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than STNE and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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