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 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?

<ul><li>PagSeguro Digital's first quarter of 2025 earnings reveal a nuanced financial landscape for the company, emphasizing both growth and challenges amid a fluctuating macroeconomic environment.</li><li>The quarter was marked by a notable increase in total payment volume (TPV) and client base expansion, despite a slowdown in TPV growth compared to the previous quarter.</li><li>The company reported strong financial outcomes, featuring a 13% year-over-year increase in net revenue, amounting to BRL 4.9 billion.</li></ul>

PagSeguro Digital's first quarter of 2025 earnings reveal a nuanced financial landscape for the company, emphasizing both growth and challenges amid a fluctuating macroeconomic environment.The quarter was marked by a notable increase in total payment volume (TPV) and client base expansion, despite a slowdown in TPV growth compared to the previous quarter.The company reported strong financial outcomes, featuring a 13% year-over-year increase in net revenue, amounting to BRL 4.9 billion.

PagSeguro Digital: Leveraging Digital Payments & E-commerce To Ensure Sustained Growth Both In Market Share & Revenue!

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.

<ul>
<li>In the current volatile investment climate, we rein in our buy ratings retaining just one name despite the continuing attractive valuation metrics</li>
<li>We remove attractively valued PagBank and recent IPO PayPay from our payments buy list, due to a more volatile, potentially “risk-off”, investment climate</li>
<li>We keep only Klarna on the buy list, due management’s solid execution and attractive valuations, but we advise reducing positions</li>
</ul>


In the current volatile investment climate, we rein in our buy ratings retaining just one name despite the continuing attractive valuation metrics
We remove attractively valued PagBank and recent IPO PayPay from our payments buy list, due to a more volatile, potentially “risk-off”, investment climate
We keep only Klarna on the buy list, due management’s solid execution and attractive valuations, but we advise reducing positions


Payment Companies Update: Reining in Positive Recommendations

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

Brazil

PagSeguro Digital Ltd. provides financial technology services. The Company offers multiple digital payment solutions, in-person payments via point of sales devices, and prepaid cards services. Pagseguro Digital serves clients in Brazil and the United States.

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Pagseguro Digital Ltd (PAGS US)

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 Update: Reining in Positive Recommendations

In the present volatile investment climate, only Klarna remains on our buy list due to solid execution and attractive valuations; our caution...

Victor Galliano

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

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

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

PagSeguro Digital: Leveraging Digital Payments & E-commerce To Ensure Sustained Growth Both In Market Share & Revenue!

PagSeguro Digital's first quarter of 2025 earnings reveal a nuanced financial landscape for the company, emphasizing both growth and challenges...

Baptista Research

Payment Companies Update: Reining in Positive Recommendations

​In the present volatile investment climate, only Klarna remains on our buy list due to solid execution and attractive valuations; our caution...

Victor Galliano

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

In the present volatile investment climate, only Klarna remains on our buy list due to solid execution and attractive valuations; our caution...

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...