What's the idea? Brazil's economy is one of the most stable in the region, and its capacity provides significant growth potential for the company. Growing credit card and e-commerce penetration in Brazil will boost PagSeguro's transaction processing revenues. Although it has been a relatively short time since its launch in 2019, PagBank has become the second most-used neo-bank in Brazil. Expansion in the lending business can provide the company with interest income, which has a positive correlation with the key rate. PagSeguro is listed at a discount compared to the industry average. According to the consensus of investment banks, the stock has significant upside potential.