PagSeguro Digital: Built To Benefit From Brazil's Next Rate-Cutting Cycle

PagSeguro Digital remains a Strong Buy, trading at a deep discount due in part to higher macro headwinds and slowed down Brazilian rate cuts. PAGS delivered Q1 beats on the top and bottom lines, robust buybacks, a 23% YoY deposit increase, and a 36% credit portfolio expansion. Guidance targets 25–35% credit portfolio growth, 9–13% EPS growth, and BRL 1.8–2 billion CAPEX in 2026, with 2029 goals reaffirmed. Intrinsic value is estimated well above current levels, reflecting conservative assumptions and a strong margin of safety against regional and competitive risks.

Back when I last covered PagSeguro Digital (PAGS), I reiterated the company's Strong Buy rating, highlighting its significant undervaluation and how "Brazil's Potential Rate Cuts And Credit Expansion Support Re-Rating." With the stock falling a