Pagseguro Digital (PAGS) has disclosed a new risk, in the Natural and Human Disruptions category.
Pagseguro Digital faces substantial risks due to potential man-made or natural disasters, including the severe implications of climate change. As observed between September and November 2023, extreme weather events in Brazil’s South and Southeast regions disrupted energy supplies critical to Pagseguro’s operations. The company’s reliance on local infrastructure means that damage from such incidents could lead to significant operational interruptions, increased refrigeration costs, and equipment failure. Furthermore, transition risks like rising energy costs due to electricity shortages or increased prices pose a threat to operating expenses, potentially impacting Pagseguro’s financial stability and regulatory compliance.
The average PAGS stock price target is $17.38, implying 37.39% upside potential.
To learn more about Pagseguro Digital’s risk factors, click here.
