PagSeguro Digital downgraded to Sell from Neutral at Goldman Sachs

Goldman Sachs analyst Tito Labarta downgraded PagSeguro Digital to Sell from Neutral with a price target of $9, down from $15. While the shares may be close to the bottom, there remains downside risks to consensus estimates, Labarta tells investors in a research note. The analyst reduced estimates following the Q3 results, saying financial expenses remain a headwind, margins remain under pressure as PagSeguro shifts to the lower margin SME segment, and PagBank has yet to break even.