PAGS US (Neutral, TP: $14, +55%) Pagbank (PagSeguro) Q2 Quick Take: Revenue concerns set to linger into Q3
Pagbank (PagSeguro) reported Q2s after close, missing at TPV and revenue (again) but managing to make net income given a better funding mix and a sharp reduction in credit provisions (which won’t be sustained at this level we assume). With SELIC cuts now coming through, it’s this top line trend (revenue down 2% y/y) - as PagSeguro chases a different merchant mix - which is likely to continue to prevent stock outperformance: whilst TPV looks to be improving in Q3 a touch, management suggested take-rate would likely drift lower.
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