Skip to main content

Market Overview

PagSeguro Has 'Several Cyclical And Secular Tailwinds,' Says Bullish Analyst

Share:
PagSeguro Has 'Several Cyclical And Secular Tailwinds,' Says Bullish Analyst

PagSeguro Digital Ltd (NYSE: PAGS) shares were rising Tuesday morning.

There appeared to be “several cyclical and secular tailwinds” that should drive the company’s revenue and earnings growth between 2024 and 2026, according to Evercore ISI.

The PagSeguro Digital Analyst: Sheriq Sumar upgraded the rating for PagSeguro Digital from In-Line to Outperform, with a price target of $18.

The PagSeguro Digital Thesis: The company’s total payment volume (TPV) growth is poised to accelerate from 12% in 2023 to 17% in 2024 and 13% in 2025, Sumar said in the upgrade note.

Check out other analyst stock ratings.

PagSeguro Digital’s TPV was likely receiving a boost as the company “executes on its go-to-market strategy” and prioritizes high-value SMB merchants “by cross-selling value-added services and banking solutions,” the analyst stated.

“We also forecast net take rates to stabilize starting 2025 as low-value nano-merchant attrition decelerates,” Sumar added.

Sumar also expected margin pressure from financial expenses to ease “materially,” with declining interest rates in Brazil and “rising client deposits providing a cheaper source of funding for prepayment business.”

PAGS Price Action: Shares of PagSeguro Digital had risen by 4.67% to $14.57 at the time of publication on Tuesday.

Read Next: Nasdaq, S&P 500 Futures Surge Amid Risk-On Mood; Bitcoin, Gold Rally — Analyst Says 'Hard To Fight This Powerful Trend'

Photo: Shutterstock

Latest Ratings for PAGS

DateFirmActionFromTo
Jan 2022HSBCDowngradesBuyHold
Jan 2022Goldman SachsDowngradesBuyNeutral
Jan 2022KeybancDowngradesOverweightSector Weight

View More Analyst Ratings for PAGS

View the Latest Analyst Ratings

 

Related Articles (PAGS)

View Comments and Join the Discussion!

Posted-In: Evercore ISI Expert IdeasAnalyst Color Long Ideas Upgrades Analyst Ratings Movers Trading Ideas

Latest Ratings

StockFirmActionPT
SEDGB of A SecuritiesMaintains411.0
PTLOPiper SandlerMaintains28.0
AOUTLake StreetMaintains26.0
RAPTPiper SandlerMaintains52.0
OCXLake StreetMaintains6.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com