Evaluating PagSeguro Digital: Insights From 4 Financial Analysts

4 analysts have expressed a variety of opinions on PagSeguro Digital PAGS over the past quarter, offering a diverse set of opinions from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $12.5, with a high estimate of $16.00 and a low estimate of $6.50. A negative shift in sentiment is evident as analysts have decreased the average price target by 22.7%.

Analyzing Analyst Ratings: A Detailed Breakdown

The perception of PagSeguro Digital by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to PagSeguro Digital. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of PagSeguro Digital compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for PagSeguro Digital's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of PagSeguro Digital's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on PagSeguro Digital analyst ratings.

Get to Know PagSeguro Digital Better

PagSeguro Digital Ltd is a Brazilian-based company that acts as a provider of financial technology solutions focused primarily on Micro-Merchants, Small Companies and Medium-Sized Companies (SMEs), in Brazil. The company provides a range of solutions and tools such as cash-in and cash-out options and provides access to working capital to help to manage its cash flow. It delivers an end-to-end digital ecosystem to address day-to-day financial needs, including receiving and spending funds and managing and growing businesses for clients. The company also offers the Free PagSeguro Digital Account delivering Cash-In Solutions, Online and In-Person Payment Tools, Online Payment Tools; and Web Check Outs offer tokenization, handling of shipping information, and others.

Unraveling the Financial Story of PagSeguro Digital

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: PagSeguro Digital's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 6.74%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.

Net Margin: PagSeguro Digital's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 21.78% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): PagSeguro Digital's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 3.59%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.8%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: PagSeguro Digital's debt-to-equity ratio stands notably higher than the industry average, reaching 2.56. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

How Are Analyst Ratings Determined?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.