Check out other analyst stock ratings. "Net margins have steadily declined at PagSeguro, as the company continues to absorb the impact of higher interest rates," the analyst wrote. "Furthermore, its shift to the SME segment has also led to relatively lower margins compared to higher margin micro-merchants, and PagBank has yet to become profitable," he added. PagSeguro's earnings growth could "remain muted at only 7% in 2023," while rival StoneCo Ltd's (NASDAQ:STNE) "more than doubles," growing 101%, Labarta further mentioned. PAGS Price Action: Shares of PagSeguro were trading down 4.94% to $10.01 Thursday morning. Photo via Shutterstock.