The Analyst Landscape: 5 Takes On PagSeguro Digital

Ratings for PagSeguro Digital PAGS were provided by 5 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $12.3, a high estimate of $16.00, and a low estimate of $6.50. This current average has decreased by 23.12% from the previous average price target of $16.00.

Breaking Down Analyst Ratings: A Detailed Examination

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: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of PagSeguro Digital compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of PagSeguro Digital's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into PagSeguro Digital's market standing. Stay informed and make well-considered decisions with 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.

PagSeguro Digital's Financial Performance

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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 is impressive, surpassing industry averages. With a net margin of 21.78%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): PagSeguro Digital's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 3.59%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): PagSeguro Digital's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.8%, the company may face hurdles in achieving optimal financial returns.

Debt Management: With a high debt-to-equity ratio of 2.56, PagSeguro Digital faces challenges in effectively managing its debt levels, indicating potential financial strain.

What Are Analyst Ratings?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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