PagSeguro Digital (PAGS) drew fresh attention after its shares climbed 5.60% in mid-day trading on January 27, approaching a 52 week high as recent analyst commentary became more constructive.

The latest move adds to a strong run, with a 7 day share price return of 9.79%, a 30 day gain of 23.20% and a 90 day rise of 25.13%. The 1 year total shareholder return of 65.42% contrasts with a 5 year total shareholder return decline of 77.09%, suggesting momentum has recently been rebuilding as recent analyst commentary has turned more supportive.

If PagSeguro Digital has caught your eye, it could be a good moment to widen the lens and look at fast growing stocks with high insider ownership that might also be drawing increasing attention.

With PagSeguro Digital trading around $12.00, sitting close to analyst targets yet showing an estimated intrinsic discount of about 39%, investors now face the key question: is there still real upside potential here, or is the market already pricing in future growth?

Most Popular Narrative: 2.1% Undervalued

PagSeguro Digital's most followed narrative puts fair value around $12.26 per share, just above the recent $12.00 close. This sets up a tight valuation debate around execution and capital allocation.

The analyst price target for PagSeguro Digital has been raised by US$1 to US$12, as analysts point to a slightly higher fair value estimate alongside updated assumptions for discount rate, revenue growth, profit margin and future P/E after the company faced its most challenging recent quarter and management changes signaled a rethink of the way forward.

Curious what sits behind that small bump in fair value? The narrative leans on steadier revenue growth, firmer margins and a future earnings multiple that is not stretched by sector standards. Want to see how those ingredients combine into that $12.26 figure and why a modest discount rate tweak matters so much to the model story?

Result: Fair Value of $12.26 (UNDERVALUED)

However, this story could still be knocked off course if competition from PIX pressures transaction yields, or if higher funding costs squeeze margins more than expected.

Build Your Own PagSeguro Digital Narrative

If you see the numbers differently or prefer to stress test the assumptions yourself, you can spin up a fresh PagSeguro view in just a few minutes, then Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding PagSeguro Digital.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.