Breaking Down PagSeguro Digital: 6 Analysts Share Their Views

PagSeguro Digital PAGS has been analyzed by 6 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $13.0, along with a high estimate of $16.00 and a low estimate of $11.00. This current average represents a 19.75% decrease from the previous average price target of $16.20.

Decoding Analyst Ratings: A Detailed Look

The standing of PagSeguro Digital among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines 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 unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of PagSeguro Digital compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of PagSeguro Digital's stock. This examination reveals shifts in analysts' expectations over time.

For valuable insights into PagSeguro Digital's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on PagSeguro Digital analyst ratings.

About PagSeguro Digital

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: Financial Performance Dissected

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: PagSeguro Digital's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2024, the company experienced a revenue decline of approximately -0.41%. This indicates a decrease in the company's top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: PagSeguro Digital's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 23.5%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 3.69%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): PagSeguro Digital's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.79%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: PagSeguro Digital's debt-to-equity ratio surpasses industry norms, standing at 2.57. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Analyst Ratings: Simplified

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.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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