Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Credit

<ul><li>PagSeguro Digital reported modest growth and operational resilience in the second quarter of 2026 amid a challenging macroeconomic environment in Brazil.</li><li>The company's total payment volume increased by 3% year-over-year to BRL 133 billion, signaling continued engagement growth.</li><li>Its expanded credit portfolio grew 31% year-over-year to BRL 52 billion, driven by working capital loans and credit card offerings, while total deposits rose 15% to BRL 43 billion, supporting future credit expansion.</li></ul>

PagSeguro Digital reported modest growth and operational resilience in the second quarter of 2026 amid a challenging macroeconomic environment in Brazil.The company's total payment volume increased by 3% year-over-year to BRL 133 billion, signaling continued engagement growth.Its expanded credit portfolio grew 31% year-over-year to BRL 52 billion, driven by working capital loans and credit card offerings, while total deposits rose 15% to BRL 43 billion, supporting future credit expansion.

PagSeguro Digital's BRL 52 Billion Credit Engine: Can Growth Stay Disciplined?

<ul><li>PagSeguro Digital delivered a mixed set of results for the fourth quarter of 2025, showing resilience in a challenging macroeconomic environment while also navigating through Brazilian interest rate headwinds.</li><li>The company reported a moderate increase in revenues, driven by a 51% growth in banking revenues and a 9% increase in payments.</li><li>Despite facing a sharp rise in financial expenses linked to an increase in Brazil's SELIC rate, PagSeguro managed to report a 4% year-over-year increase in net income.</li></ul>

PagSeguro Digital delivered a mixed set of results for the fourth quarter of 2025, showing resilience in a challenging macroeconomic environment while also navigating through Brazilian interest rate headwinds.The company reported a moderate increase in revenues, driven by a 51% growth in banking revenues and a 9% increase in payments.Despite facing a sharp rise in financial expenses linked to an increase in Brazil's SELIC rate, PagSeguro managed to report a 4% year-over-year increase in net income.

PagSeguro Digital Ltd Is Strengthening Its Financial Ecosystem—Can Credit

Equity Bottom-Up

<ul><li>PagSeguro Digital has presented its financial and operational outcomes for the third quarter of 2025 against a backdrop of macroeconomic challenges.</li><li>These results provide a nuanced picture of the company's ongoing strategic direction, revealing both strengths and areas for potential improvement.</li><li>PagSeguro Digital ended the quarter with a client base of 33.7 million, marking an increase of 1.6 million year-over-year despite tougher economic conditions.</li></ul>

PagSeguro Digital has presented its financial and operational outcomes for the third quarter of 2025 against a backdrop of macroeconomic challenges.These results provide a nuanced picture of the company's ongoing strategic direction, revealing both strengths and areas for potential improvement.PagSeguro Digital ended the quarter with a client base of 33.7 million, marking an increase of 1.6 million year-over-year despite tougher economic conditions.

PagSeguro Digital: A 72% Banking Margin in a Tough Rate Cycle—How Is It Pulling This Off?

Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

Thematic (Sector/Industry)

<ul>
<li>We update Klarna’s pre-IPO valuation based on recent private share transactions and that of Stripe; Indian payments company Pine Labs is reputedly looking for an IPO valuation of USD6bn</li>
<li>Our 2H24 recommended shares performance was suboptimal; only two of our four longs delivered gains, and our short’s share price was strong in the “risk on” investor climate</li>
<li>We downgrade Shift4 to neutral, keeping PagSeguro as our core value pick along with European value play Nexi and US megacap Visa; we keep our sell rating on Affirm</li>
</ul>


We update Klarna’s pre-IPO valuation based on recent private share transactions and that of Stripe; Indian payments company Pine Labs is reputedly looking for an IPO valuation of USD6bn
Our 2H24 recommended shares performance was suboptimal; only two of our four longs delivered gains, and our short’s share price was strong in the “risk on” investor climate
We downgrade Shift4 to neutral, keeping PagSeguro as our core value pick along with European value play Nexi and US megacap Visa; we keep our sell rating on Affirm


Payment Companies – Key Picks and Potential IPOs in Focus

<ul>
<li>In 1H23 and in the early part of 3Q23, our longs – Visa, Wise and PagSeguro – delivered positive returns; our shorts, DLocal and Kakao Pay, were also modestly successful</li>
<li>Ahead of results to June 2023, we retain card network megacap Visa as a core holding, as well as PagSeguro; we add PayPal and drop Wise from the buy list</li>
<li>We keep our negative view on DLocal and add Affirm, given high take-rates and  premium valuations; we stick with our negative on Kakao Pay due to its lofty multiples</li>
</ul>


In 1H23 and in the early part of 3Q23, our longs – Visa, Wise and PagSeguro – delivered positive returns; our shorts, DLocal and Kakao Pay, were also modestly successful
Ahead of results to June 2023, we retain card network megacap Visa as a core holding, as well as PagSeguro; we add PayPal and drop Wise from the buy list
We keep our negative view on DLocal and add Affirm, given high take-rates and  premium valuations; we stick with our negative on Kakao Pay due to its lofty multiples


Payment Companies – 1H 2023 in Review, Our High Conviction Calls for 2H 2023

Brazil

PagSeguro Digital Ltd. is a Brazilian financial technology company that provides digital payment and financial solutions primarily for consumers, individual entrepreneurs, micro-merchants, and small to medium-sized businesses. The company offers a range of products including point-of-sale (POS) devices, online payment tools, digital banking services via PagBank, and various credit and investment solutions. It was founded in 2006 and is headquartered in São Paulo, Brazil.

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PagSeguro Digital (PAGS US)

PagSeguro Digital's BRL 52 Billion Credit Engine: Can Growth Stay Disciplined?

PagSeguro Digital reported modest growth and operational resilience in the second quarter of 2026 amid a challenging macroeconomic environment in...

Baptista Research

PagSeguro Digital Ltd Is Strengthening Its Financial Ecosystem—Can Credit

PagSeguro Digital delivered a mixed set of results for the fourth quarter of 2025, showing resilience in a challenging macroeconomic environment...

Baptista Research

PagSeguro Digital: A 72% Banking Margin in a Tough Rate Cycle—How Is It Pulling This Off?

PagSeguro Digital has presented its financial and operational outcomes for the third quarter of 2025 against a backdrop of macroeconomic...

Baptista Research

Payment Companies – Key Picks and Potential IPOs in Focus

PagSeguro is our core value pick, Nexi and Visa are also buys, Affirm still rated a sell, Shift4 is now neutral. Updated Klarna and Stripe pre-IPO...

Victor Galliano

Payment Companies – 1H 2023 in Review, Our High Conviction Calls for 2H 2023

Our 2H 2023 payments company longs are card network megacap Visa, value play PagSeguro and PayPal with our short calls being DLocal, Kakao Pay and...

Victor Galliano

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

PagSeguro Digital's BRL 52 Billion Credit Engine: Can Growth Stay Disciplined?

PagSeguro Digital reported modest growth and operational resilience in the second quarter of 2026 amid a challenging macroeconomic environment in...

Baptista Research

PagSeguro Digital Ltd Is Strengthening Its Financial Ecosystem—Can Credit

PagSeguro Digital delivered a mixed set of results for the fourth quarter of 2025, showing resilience in a challenging macroeconomic environment...

Baptista Research

PagSeguro Digital: A 72% Banking Margin in a Tough Rate Cycle—How Is It Pulling This Off?

PagSeguro Digital has presented its financial and operational outcomes for the third quarter of 2025 against a backdrop of macroeconomic...

Baptista Research

Payment Companies – Key Picks and Potential IPOs in Focus

PagSeguro is our core value pick, Nexi and Visa are also buys, Affirm still rated a sell, Shift4 is now neutral. ​Updated Klarna and Stripe pre-IPO...

Victor Galliano

Payment Companies – 1H 2023 in Review, Our High Conviction Calls for 2H 2023

Our 2H 2023 payments company longs are card network megacap Visa, value play PagSeguro and PayPal with our short calls being DLocal, Kakao Pay and...

Victor Galliano

PagSeguro is our core value pick, Nexi and Visa are also buys, Affirm still rated a sell, Shift4 is now neutral. Updated Klarna and Stripe pre-IPO...