Scotiabank Sees 50 Percent Upside in This Fintech Company

By Benzinga
Benzinga
Benzinga
December 2, 2021 Updated: December 2, 2021

Scotiabank analyst Jason Mollin initiated coverage of PagSeguro Digital Ltd with an Outperform rating and a $39 price target, implying a 50 percent upside.

Mollin rolled out coverage on a trio of Brazilian payments and fintech players, which he noted together represent about 50 percent of the Brazilian acquiring market’s total payment volume or TPV.

Given PagSeguro’s business mix with both acquiring and card issuance through PagBank, potential caps on prepaid cards that would hit interchange revenues would be offset by lower interchange fees/costs in the acquiring business, making concerns about a possible cap on the interchange for prepaid cards “overdone.”

PagSeguro is his top pick among the three payment names just initiated, the analyst noted.

Price Action

PagSeguro shares closed 6.02 percent at $26.325 on Thursday.

By Anusuya Lahiri

© 2021 The Epoch Times. The Epoch Times does not provide investment advice. All rights reserved.

Benzinga