Pagseguro Digital: Strategic Initiatives and AI-Driven Growth Under New Management Justify Buy RatingWe met last week with PagSeguro’s recently appointed Gustavo Sechin. Their priority is to execute the long-term strategic plan announced in September, which aims to expand the loan book to ‘25E) driven primarily by unsecured working capital loans. However, PAGS continues to face short- term headwinds in payments, which are likely to constrain EPS growth in the near term. Monetizing a large client and deposit base through credit Mgmt.’s strategy centers on leveraging a robust banking franchise built over the past years, with 17mn active banking clients and R$39bn in deposits. The new mgmt. team brings retail banking expertise and has revamped credit models, products, and collection capabilities, setting the stage for acceleration ahead. Mgmt.