Expert Outlook: PagSeguro Digital Through The Eyes Of 5 Analysts

In the latest quarter, 5 analysts provided ratings for PagSeguro Digital PAGS, showcasing a mix of bullish and bearish perspectives.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated PagSeguro Digital and provided 12-month price targets. The average target is $12.3, accompanied by a high estimate of $16.00 and a low estimate of $6.50. Observing a downward trend, the current average is 23.12% lower than the prior average price target of $16.00.

Understanding Analyst Ratings: A Comprehensive Breakdown

In examining recent analyst actions, we gain insights into how financial experts perceive PagSeguro Digital. The following summary 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: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of PagSeguro Digital compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of PagSeguro Digital's stock. This comparison reveals trends in analysts' expectations over time.

Capture valuable insights into PagSeguro Digital's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic 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.

Breaking Down PagSeguro Digital's Financial Performance

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: PagSeguro Digital displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 6.74%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind 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 falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.8%, 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 2.56. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

The Basics of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

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.