What happened

Shares of StoneCo (STNE -2.38%) jumped on Friday, rising as much as 7.6%. But by the time the market closed, the financial technology company's stock was up 5.5%.

Most likely, the growth stock's gain is primarily due to an analyst's upgraded rating.

A chart showing a stock price rising sharply.

Image source: Getty Images.

So what

Credit Suisse analyst Daniel Federle gave StoneCo stock an outperform rating, up from a neutral rating previously. In addition, Federle gave the stock a 12-month price target of $100. This price target implies 14% upside from where the stock closed on Friday.

StoneCo's most recently reported quarterly results showed third-quarter revenue rising 39% year over year as total payment volume on its platform soared 114%. 

Now what

In the company's third-quarter shareholder letter, StoneCo CEO Thiago Piau said the company is still in its beginning stage.

"Even though we are happy with our growth trajectory we think that we are still far from our potential and therefore we will keep investing heavily on technology, team development and channel distribution as we see ourselves still in the early days of our business," explained Piau.