Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
PagSeguro Digital Ltd (NYSE:PAGS) announced a major product expansion Tuesday in financial services.
It's a sign of the company’s rapid transformation into a full-fledged acquiring and financial services platform and significantly boosts PagSeguro's long-term top- and bottom-line prospects, according to Guggenheim Securities.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
The Analyst
Jeff Cantwell upgraded PagSeguro Digital from Neutral to Buy and set a $33 price target.
The Thesis
The new PagSeguro app — PagBank — will begin to offer cash cards and credit cards to merchants and consumers, Cantwell said in the Thursday upgrade note. (See his track record here.)
The strategy has evolved in the right direction, since the new services are “highly complementary” with PagSeguro’s existing platform, and the move significantly increases the company’s TAM, the analyst said.
Want Private Access to Benzinga Analyst?
Check out the latest strategies our team of experts are using every week so that you can always adapt to the market like the pros!—Get FULL Access to This Week's Webinar Here.
Cantwell quoted data from Brazil’s Central Bank that shows the country’s TAM for banking and cards is $45 billion— and for credit cards, $282 billion.
The product expansion creates a potential revenue opportunity for PagSeguro that is around 14 times greater than the company would have if it continued as only a merchant acquirer, the analyst said.
PagSeguro's cash card is the primary product among the ones announced this week, Cantwell said. The card could see high adoption in Brazil, given PagSeguro’s strong brand recognition and management’s focus on a largely “greenfield opportunity: the underbanked," he said.
Guggenheim raised its EPS estimates for 2019 from 4.62 Brazilian reals ($1.15) to 4.67 reals ($1.16); and from 5.93 reals ($1.48) to 6.05 reals ($1.51) for 2020.
Price Action
PagSeguro shares were trading up more than 8 percent at $30.41 at the time of publication Thursday.
Related Links:
60 Biggest Movers From Yesterday
Earnings Scheduled For May 14, 2019
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.