Breaking Down PagSeguro Digital: 6 Analysts Share Their Views

Across the recent three months, 6 analysts have shared their insights on PagSeguro Digital PAGS, expressing a variety of opinions spanning from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $12.25, along with a high estimate of $16.00 and a low estimate of $6.50. A decline of 21.47% from the prior average price target is evident in the current average.

Decoding Analyst Ratings: A Detailed Look

A clear picture of PagSeguro Digital's perception among financial experts is painted with a thorough analysis 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: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of PagSeguro Digital compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of PagSeguro Digital's stock. This analysis reveals shifts 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.

Delving into PagSeguro Digital's Background

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: 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. 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 is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 3.59%, the company may face hurdles in achieving optimal financial returns.

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?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

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.

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