Analyst Mario Pierry of Bank of America Securities reiterated a Buy rating on Pagseguro Digital, retaining the price target of $13.00.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
Mario Pierry has given his Buy rating due to a combination of factors including the strategic initiatives undertaken by Pagseguro Digital’s new management team. The newly appointed CEO and CFO are committed to a long-term strategic plan that focuses on expanding the company’s loan book significantly by 2029, primarily through unsecured working capital loans. Despite facing short-term challenges in the payments sector, which may limit earnings growth in the near term, the management’s focus on leveraging a strong banking franchise with a substantial client and deposit base is promising.
Furthermore, the new management team has brought in retail banking expertise and has improved credit models and collection capabilities, with artificial intelligence playing a crucial role in enhancing credit underwriting processes. The forecasted loan and deposit growth rates are optimistic, and while the company has adjusted its TPV growth forecast due to economic conditions and competition, the valuation remains attractive. With a price objective of $13, representing a potential upside of 30%, Pierry reiterates the Buy rating based on the stock’s appealing valuation and growth prospects.
Pierry covers the Financial sector, focusing on stocks such as XP, Nu Holdings, and Banco Bradesco SA. According to TipRanks, Pierry has an average return of -0.2% and a 45.16% success rate on recommended stocks.
In another report released on December 3, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $12.50 price target.