Citi analyst Gabriel Gusan downgraded PagSeguro Digital to Neutral from Buy with a price target of $12, down from $17. The company faces a more challenging year ahead, the analyst tells investors in a research note. While the higher rate environment helps Cielo relative to peers by keeping competitors less aggressive, PagSeguro has a harder time passing through prices to its micro merchant base, which still takes up most of its total payment volume and "suffers the profitability squeeze from funding costs," Citi contends.
Published first on TheFly
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