Brazil's PagSeguro rises after Evercore upgrades to 'outperform'

PagSeguro Digital

26/03/2024 15:09

** Shares of Brazilian digital payments firm PagSeguro
Digital  PAGS.N  rise as much as 6.3%, last up 3.8% at $14.46
    ** Evercore ISI upgrades PAGS to "outperform" from "in
line"; raises PT to $18 from $12, a 29.3% upside to the last
close
    ** Expects PAGS focus on high value small and medium-sized
businesses (SMB) to accelerate total payment volume growth 
    ** Brokerage expects "take rate" - the fees charged for
processing a transaction - to stabilize starting 2025 as
attrition from nano merchants slows down
    ** PAGS' take rate has come under pressure since 2021 hurt
by increased attrition of nano merchants as it focused more on
serving SMB accounts - Evercore ISI
    ** Ten of 16 brokerages rate the stock "buy" or higher and
six "hold"; median PT is $16 - LSEG data
    ** As of last close, PAGS shares up 11.6% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))