PagBank downgraded to Neutral from Buy at Citi

Citi downgraded PagBank (PAGS) to Neutral from Buy with a price target of $7, down from $17, after assuming coverage of the name. With the challenges stemming from rising interest rates, the Brazilian payment acquirers are expected to face significant financial expenses headwinds, the analyst tells investors in a research note. Citi recommends investors avoid the industry, saying the economics are under pressure, and that it does not see a light at the end of tunnel. addition to macroeconomic pressures, the industry also faces many other challenges, such as volume growth deceleration and low-quality volumes, contends the firm.