Analyst Jorge Kuri of Morgan Stanley maintained a Sell rating on Pagseguro Digital, retaining the price target of $7.00.
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Jorge Kuri has given his Sell rating due to a combination of factors impacting Pagseguro Digital’s performance. The company recently experienced its first-ever contraction in Total Payment Volume (TPV), which supports the thesis that their growth phase has ended. This decline in TPV, coupled with underwhelming earnings results, indicates that Pagseguro is losing market share at a concerning rate.
Additionally, recent executive changes, including the departure of both the CEO and CFO shortly after a strategic update, suggest internal uncertainty and a potential reevaluation of the company’s direction. The revised guidance for gross profit and earnings per share also appears overly optimistic given the current market conditions. Furthermore, the payments industry is facing saturation and pricing pressures, which could lead to slower growth and reduced profitability for Pagseguro. These elements collectively contribute to Kuri’s cautious outlook and Sell recommendation for the stock.
According to TipRanks, Kuri is ranked #8318 out of 10072 analysts.