PagBank upgraded to Buy from Neutral at Citi

Citi upgraded PagBank (PAGS) to Buy from Neutral with a price target of $10, up from $7. Everyday, the company is one step closer to be a “small-sized bank” with potential higher return on equity, the analyst tells investors in a research note. The firm says that even considering the higher interest rates for 2025, PagBank’s guidance contemplates earnings expansion of 11%, driven by re-pricing. As Citi anticipates a lower rate for 2026, it believes that this could be a tailwind for results.