7/102 sources · 2 publishersUpdated Nov 5, 12:55 UTC
UBS downgrades PagSeguro to Neutral and cuts price target to $8
UBS analysts lowered PagSeguro Digital Ltd.'s rating from Buy to Neutral and reduced the price target from $13 to $8. The downgrade reflects concerns that a higher‑for‑longer interest‑rate environment could cut earnings by about 14% in 2027. UBS also noted slowing portfolio growth, rising cost of risk and a modest P/E of 5.69.
Why it matters
UBS’s lower target signals weaker earnings outlook, which may pressure the stock and influence other investors' valuations. The firm estimates a 100‑basis‑point rate rise would shave R$360 million, roughly 14% of 2027 earnings, highlighting sensitivity to monetary policy.
Key facts
- 1UBS downgraded PagSeguro Digital Ltd. to Neutral from Buy. investing.com
- 2UBS cut the price target to $8.00 from $13.00. investing.com
- 3The price‑target reduction represents a 38.5% decrease. tradingview.com
- 4UBS estimates a 100‑basis‑point increase in policy rates would reduce earnings by R$360 million, about 14% of the 2027 estimate. investing.com
- 5PagSeguro shares were trading at $7.92, just above the 52‑week low of $7.50. investing.com
- 6The stock’s P/E ratio was 5.69. investing.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.