PagSeguro, i3 Verticals, Fiserv downgraded at KeyBanc on sector refresh
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PagSeguro Digital (PAGS
-4.3%), i3 Verticals (IIIV
-1.0%), and Fiserv (FISV
-0.6%) all drop after KeyBanc Capital Markets analyst Josh Beck downgrades the stock to Sector Weight from Overweight as he takes a more selective stance within the processor group in the fintech sector.

He's also seeking more visibility into the companies' growth prospects, he said.
Reduces i3 Verticals (NASDAQ:IIIV) price target to $22 from $30, Fiserv's (NASDAQ:FISV) to $105 from $130, and PagSeguro's (NYSE:PAGS) to $35 from $48.
On PagSeguro (PAGS), Beck is seeking more visibility into scaling its PagBank consumer accounts
For all three companies, KeyBanc is optimistic about their management teams and general strategy.
The ratings changes are part of KeyBanc's revamped playbook on fintechs. While the digitization of cash "still has legs, we see the role of technology, in particular modern software tech stacks that seamlessly embed commerce/finance experiences and/or establish direct relationships as increasingly strategic in defining the next wave of digitization to reach underserved and/or emerging markets," Beck writes in a note to clients.
Beck favors disruptive fentechs, such as "key ideas" Block (NYSE:SQ), PayPal (NASDAQ:PYPL) and Marqeta (NASDAQ:MQ), with underappreciated multi-year growth initiatives. Within the processor sector, the analyst prefers FIS (NYSE:FIS).
See how IIIV, FISV, PAGS, SQ, and PYPL compare in Quant rating factor grades under the peer stats comparison tab:

Note that in October, SA's Quant rating flagged PagSeguro (PAGS) as a stock likely to perform poorly.

SA contributor The Software Side of Life takes a more bullish view on PagSeguro (PAGS).