Buying opportunity in brazil e-payment provider PagseguroThe Brazilian digital payment firm for small/medium sized merchant is back after a very difficult Q4. The stock fell sharply after an equity offering (October) and slight revenue/earnings miss in Q3 of very high expectations (November).
the $28 proved to be formidable support zone for stock where very high volumes exchanged. The stock held above its ichimoku cloud, and the weekly MACD is about to turn positive again. On the daily, the stock broke above its steep downtrend line. next resistance zone is between $36.60 (gap fill) and $38. A breach above would further confirm a return to the bulltrend foir a potential retun to $45 in next 3-6 months.
PAGS in a fast growing company with 3 year sales growth of 69% and EPS growth of 147%, for a 12 month fwd P/E of 25x..which seems reasonable below peer Stoneco at 38x. It enjoys a leading position in digital payment service for underserved micro/small/merchants.
