StoneCo Ltd. surged as much as 28% on Wednesday after the Brazilian payments processor indicated a swift comeback following the pandemic shutdown.

The stock (STNE) saw its biggest intraday gain since October 2018 after posting first-quarter earnings. “We went too low,” Susquehanna analyst James Friedman wrote in a research note raising his price target following a March cut.

“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,” he said.

The Sao Paulo-based e-commerce software company is backed by a 7.9% stake from Warren Buffett’s Berkshire Hathaway Inc. Peer PagSeguro Digital Ltd. rose as much as 11.6%, to the highest since March 5.

Susquehanna Financial, James Friedman

E-commerce volume in May has already returned to 87% of what was seen before the pandemic hit.

Analysis suggests volume may be growing nearly 80% year-over-year. “Even if it’s just 10% of revenue, it may comprise the majority of the 15% growth” StoneCo is guiding for in the second quarter.

First-quarter sales met Wall Street estimates while earnings missed on higher operating expenses.

Remains neutral, price target raised to $34 from $28.

Goldman Sachs, Tito Labarta

“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.” Goldman highlighted the positive messaging on long-term growth from management during the earnings call.

“Credit, banking and software are all showing positive evolution and there is room for the take rate to increase as these products gain traction.”

Analyst expects earnings per share to fall 12% this year, rebound 107% in 2021 and 43% in 2022.

Stays at buy while price target raised to $32 from $28.

Morgan Stanley, Jorge Kuri

Transaction payment volume “resilience shines.”

“We are bullish payments as powerful secular trends -- plastification of payments and e-commerce -- should provide offset to the virus- driven cyclical downturn.” Morgan Stanley expects market share gains to drive “attractive growth” at StoneCo and PagSeguro

Rates overweight, price target $30.