Citi analyst Gustavo Schroden maintained a Buy rating on Pagseguro Digital yesterday and set a price target of $9.00.
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Gustavo Schroden has given his Buy rating due to a combination of factors including Pagseguro Digital’s strategic plans and capital distribution initiatives. The company recently held a strategic update call where management highlighted growth opportunities and introduced plans for capital optimization. A significant aspect of this update was the announcement of a capital return to shareholders, which aligns with Schroden’s model projecting a R$2.5 billion return in FY26.
Moreover, Pagseguro Digital is targeting substantial growth in its credit portfolio and aims for a gross profit growth of over 10% CAGR during the 2025-2029 period. The company also plans for an EPS expansion above a CAGR of 16% for the same term. Management’s goal to maintain a BIS ratio between 18% and 22% through dividends and buybacks further supports Schroden’s positive outlook, despite some challenges in achieving the long-term operating plan.
PAGS’s price has also changed moderately for the past six months – from $7.890 to $10.640, which is a 34.85% increase.