---
title: "Buy Rating on PicS N.V. Class A Driven by Profitable Expansion in Brazil’s Digital Finance and Healthier Credit Mix"
description: "HSBC analyst Neha Agarwala has initiated a Buy rating on PicS N.V. Class A (PICS), citing its strong earnings outlook and growth in Brazil's digital finance sector. The company has transitioned to a f"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/276353701.md"
published_at: "2026-02-19T15:25:29.000Z"
---

# Buy Rating on PicS N.V. Class A Driven by Profitable Expansion in Brazil’s Digital Finance and Healthier Credit Mix

> HSBC analyst Neha Agarwala has initiated a Buy rating on PicS N.V. Class A (PICS), citing its strong earnings outlook and growth in Brazil's digital finance sector. The company has transitioned to a full-service platform with over 60 million users and is improving profitability through effective cost control and a healthier credit mix. Agarwala's target price of USD 21 suggests significant upside potential, despite acknowledging risks in the fintech market.

Neha Agarwala, an analyst from HSBC, has initiated a new Buy rating on PicS N.V. Class A (PICS).

### President's Day Sale - 70% Off

-   Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
-   Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential

Neha Agarwala has given his Buy rating due to a combination of factors, primarily PicS N.V. Class A’s attractive earnings outlook and its expanding position in Brazil’s digital finance market. The company has evolved from a digital wallet into a full-service platform with over 60m users, strong PIX payment share, and tight cost control, which together support improving profitability and user monetization as credit products scale.

Agarwala also highlights that PicS N.V. is rebalancing its loan book toward a healthier mix of secured and unsecured credit, targeting high-quality payroll-backed lending that should enhance risk-adjusted returns. While acknowledging execution and underwriting risks in a crowded fintech landscape, she concludes that these are already reflected in the valuation, and her DDM-based target price of USD21 implies material upside from current levels, justifying a Buy recommendation.

### Related Stocks

- [PICS.US - PicS NV](https://longbridge.com/en/quote/PICS.US.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| Assessing PicS (PICS) Valuation After Recent Share Price Weakness | PicS (PICS), a Brazil-focused digital financial services platform, has seen a 4.8% drop in share price over the past day | [Link](https://longbridge.com/en/news/276064375.md) |
| How Is Intuit's Stock Performance Compared to Other Software Application Stocks? | How Is Intuit's Stock Performance Compared to Other Software Application Stocks? | [Link](https://longbridge.com/en/news/277033709.md) |
| Engie Fully Commissions Brazilian Photovoltaic Complex | Engie Fully Commissions Brazilian Photovoltaic Complex | [Link](https://longbridge.com/en/news/276684370.md) |
| 05:04 ETRepurchase of Truecaller B shares in week 8, 2026 | During week 8 (16-20 February 2026), Truecaller AB repurchased 1,400,000 B shares, totaling 0.40% of outstanding capital | [Link](https://longbridge.com/en/news/276585537.md) |
| Mercado Libre Q4 revenue rises | Mercado Libre reported a 45% year-over-year increase in Q4 revenue, driven by strong growth in its commerce business acr | [Link](https://longbridge.com/en/news/276796281.md) |

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.