Morgan Stanley Raises PagSeguro (PAGS) Price Target Amid Higher 2025-2026 Earnings Projections

PagSeguro Digital Ltd. (NYSE:PAGS) ranks among the best cheap rising stocks to invest in now. Morgan Stanley reaffirmed its Underweight rating on the Brazilian payment processor PagSeguro Digital Ltd. (NYSE:PAGS) on September 19, while raising its price target from $5 to $7. The increase comes as a result of Morgan Stanley’s revised earnings per share projections and a decrease in the valuation model’s discount rate from 13.6% to 13.0%.

Morgan Stanley has also raised PagSeguro Digital Ltd. (NYSE:PAGS)’s 2025 GAAP net income expectation to R$2,369 million, up from R$2,029 million previously projected.

Meanwhile, PagSeguro Digital Ltd. (NYSE:PAGS)’s GAAP net income is expected to be R$2,476 million in 2026, up from R$2,012 million previously.

PagSeguro Digital Ltd. (NYSE:PAGS) is a Brazilian financial technology company that offers a fully integrated digital banking and payment platform.

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. This article is originally published at Insider Monkey.