JPMorgan Raises PT on PagSeguro Digital Ltd. (PAGS) from $12 to $13; Maintains ‘Neutral’ Rating

Offering strong upside potential, PagSeguro Digital Ltd. (NYSE:PAGS) earns a spot on our list of the 10 Most Undervalued Foreign Stocks to Buy According to Analysts.

JPMorgan Raises PT on PagSeguro Digital Ltd. (PAGS) from $12 to $13; Maintains ‘Neutral’ Rating

On July 16, 2025, JPMorgan increased its price target on PagSeguro Digital Ltd. (NYSE:PAGS) from $12 to $13, maintaining a ‘Neutral’ rating. The analyst expects the company to achieve the high end of its 11-15% EPS growth guidance. The analyst maintains the same trend from February, when the target was lifted from $11. The continued optimism is driven by the company’s efforts to reprice products, reduce financial costs, and manage costs amid macroeconomic uncertainty.

The analyst’s discussions with PagSeguro Digital Ltd. (NYSE:PAGS)’s management revealed a strategic focus on margin improvements and diversification, particularly within its banking segment. This banking segment now accounts for 20% of the company’s gross profit. Meanwhile, the company’s credit segment is expected to drive its future growth. With the stock trading at a low valuation and expectations of a 15% return on equity (ROE), the analyst projects a strong outlook for PAGS.

PagSeguro Digital Ltd. (NYSE:PAGS), a Brazilian fintech company, offers financial and payment solutions for a diverse range of customers. It remains on our list of the most undervalued stocks.

While we acknowledge the potential of PAGS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PAGS and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.