PagSeguro Digital downgraded to Neutral from Buy at Citi

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.