An overseas investment idea investors shouldn't overlook is StoneCo., a Brazilian financial technology and software solutions company headquartered in the Cayman Islands that JPMorgan has grown bullish on.
He maintained his $20 year-end price target, which implies roughly 50% upside from the stock's latest close.
"We believe [a] Stone re-rating depends mostly on banking deliveries (i.e., deposits and healthy credit growth) rather than [the] macro environment."
Stone's differentiated business model, based on a close approach to clients via hyper-local distribution centers, has allowed it to quickly expand its market share, Fernandes said.
He estimates Stone has about 20% market share in the core micro, small and medium-sized businesses (MSMB) market .
Persons:
Yuri Fernandes, Stone, Fernandes, Pedro Zinner, Stone's
Organizations:
JPMorgan, Stone, Reuters
Locations:
Brazilian, Cayman Islands, U.S