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Investing.com - Morgan Stanley has raised its price target on PagSeguro (NYSE:PAGS) to $7.00 from $5.00 while maintaining an Underweight rating on the Brazilian payment processor’s stock. The stock, currently trading at $10.54, has shown remarkable momentum with a 75% gain year-to-date and is approaching its 52-week high of $10.84.
The price target increase reflects Morgan Stanley’s updated earnings per share forecasts and a reduction in the discount rate from 13.6% to 13.0% used in its valuation model.
Morgan Stanley has revised its 2025 GAAP net income projection for PagSeguro to R$2,369 million, up from its previous estimate of R$2,029 million.
For 2026, the investment bank now forecasts PagSeguro’s GAAP net income at R$2,476 million, an increase from its earlier projection of R$2,012 million.
Despite the higher price target and improved earnings outlook, Morgan Stanley continues to maintain its Underweight stance on PagSeguro shares.
In other recent news, PagSeguro Digital Ltd reported its Q2 2025 earnings, showcasing notable growth in both revenue and earnings per share (EPS). The company’s total revenue increased by 11% year-over-year, reaching BRL 5.1 billion. Additionally, diluted GAAP EPS rose by 14.2% to BRL 1.79. These results were achieved despite a challenging economic environment in Brazil, highlighting PagSeguro’s ability to expand its client base and improve its financial performance. While the company’s stock experienced a minor decline in the latest trading session, it showed a positive trend in premarket activity. These developments reflect the company’s resilience and strategic efforts to navigate economic challenges. Analysts have not provided recent upgrades or downgrades for PagSeguro Digital. Investors may find these earnings figures crucial as they evaluate the company’s current financial health.
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