PagSeguro Digital Ltd.
Company Overview: PagSeguro Digital Ltd. (NYSE: PAGS) is a corporation that provides financial technology solutions. In Brazil, the company focuses mostly on micro-merchants, small businesses, and medium-sized businesses. The Company provides a variety of digital payment options, as well as in-person payments through POS equipment that we provide to customers, free digital accounts, and account balance withdrawals.
As per our previous ‘Report published on PAGS dated 29th July 2022, Kalkine provided a ‘Speculative Buy’ stance on the stock at USD 10.89 based on ‘better profitability ratios and balance sheet health, healthy financial performance in Q1F22, higher institutional holdings and upside indicated based on Valuation done, the stock price has now moved by ~38% since then and the price is now moved above the Resistance 1 and Resistance 2 levels.
Noted below are the details of support and resistance levels provided in our previous report:
PAGS’s Daily Chart
(Source: Refinitiv, Analysis done by Kalkine Group)
Considering the resistance, target levels attainment, current trading levels, associated risks, and volatile market conditions on the back of rising interest rates, a ‘Sell’ rating is assigned to the “PAGS” at the closing market price of USD 15.03 (as of 04 August 2022).
Note: This report may be updated with details around fundamental and technical analysis, price/ chart in due course, as appropriate
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 04 August 2022. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.
Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.
Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’