PagSeguro Digital (PAGS), mcap=$4bn, price $12.35 vs. $18.1

Pitch: Brazilian SQ. The secular growth story in Brazil’s non-cash payments. Pricing/margins in the merchant acquiring industry are expected to normalize (competition acts more rationally) and higher funding costs will be transferred to customers.

Valuation: PAGS is projected to earn $1.10/$1.70/$2.10 in 2022/2023/2024. At 20x 2024 earnings this results in a $45/share target.

Exp. gain: 200%+

Full PAGS write-up (free guest account required):
https://valueinvestorsclub.com/idea/PAGSEGURO_DIGITAL_LTD/9815027284

 

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