PagSeguro Digital: The Market Is Pricing In Way Too Much Risk
A Seeking Alpha analysis reiterates a Strong Buy rating on PagSeguro Digital, noting the stock trades at a deep discount with re-rating potential as macro conditions improve. Q2 showed modest revenue and EPS growth, supported by robust credit portfolio expansion and continued share buybacks, though unchanged 2026 guidance assumes a lower Selic rate with persistent high rates posing a risk of cuts and near-term volatility.
Why it matters — PAGS watchers would care because the analysis highlights both the bullish case for the stock's valuation and credit growth, as well as the sensitivity of its 2026 guidance to Brazil's interest-rate trajectory.