PagSeguro Digital remains a Strong Buy with Q1 beats and growth outlook despite macro headwinds.

PagSeguro Digital continues to be rated a Strong Buy as it trades at a significant discount, partly due to macroeconomic challenges and slower rate cuts in Brazil. The company reported strong Q1 results, beating expectations on revenue and earnings, with a 23% year-over-year increase in deposits and a 36% expansion in its credit portfolio. Management projects credit portfolio growth of 25–35%, earnings per share growth of 9–13%, and capital expenditures of BRL 1.8–2 billion by 2026, reaffirming its 2029 goals. The stock's intrinsic value is estimated well above current levels, reflecting conservative assumptions and a strong margin of safety amid regional and competitive risks.