Why Warren Buffett Stock StoneCo Blasted Higher Today
Brazil-based fintech StoneCo (NASDAQ: STNE), which shot to prominence after Warren Buffett investment vehicle Berkshire Hathaway disclosed a stake in the company, had an excellent Tuesday. The company's shares rose a hot 10.8%, shooting well ahead of the S&P 500 index's slightly more than 3% increase.
StoneCo's Tuesday to remember was due in no small part to a substantial price target bump. Wells Fargo analyst Jeff Cantwell was the man behind the raise; he now feels StoneCo stock is worth $11 per share, more than 20% higher than his previous $9 estimation.
Cantwell is not Buffett, however. In contrast to the obviously still-bullish CEO of Berkshire Hathaway -- which according to its last regulatory filing holds nearly 10.7 million StoneCo shares for a more than 3% stake in the company -- the analyst is cautious on the stock. Although Cantwell has lifted his price target, he maintained his equal weight (neutral) recommendation on the shares.
Source Fool.com
