PagSeguro Has 'Several Cyclical And Secular Tailwinds,' Says Bullish Analyst
Portfolio Pulse from Priya Nigam
PagSeguro Digital Ltd (NYSE:PAGS) shares rose after Evercore ISI upgraded the stock from In-Line to Outperform with a price target of $18, citing cyclical and secular tailwinds expected to drive revenue and earnings growth from 2024 to 2026. Analyst Sheriq Sumar highlighted the company's total payment volume (TPV) growth acceleration, effective go-to-market strategy, and the stabilization of net take rates by 2025. Additionally, margin pressure from financial expenses is anticipated to ease due to declining interest rates in Brazil and rising client deposits.
March 26, 2024 | 3:58 pm
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PagSeguro Digital Ltd's stock was upgraded by Evercore ISI to Outperform with a price target of $18, driven by expected revenue and earnings growth, TPV growth acceleration, and easing margin pressure.
The upgrade by Evercore ISI reflects a strong positive sentiment towards PagSeguro Digital's future performance, highlighting the company's strategic positioning and financial health improvements. The anticipation of revenue and earnings growth, along with TPV growth and reduced margin pressure, are likely to positively influence investor sentiment and stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100