RBC Capital lowers PicS N.V. price target while maintaining Outperform rating amid strong Q1 growth and cost discipline.
RBC Capital reduced its price target for PicS N.V. (NASDAQ:PICS) to $18 from $19, maintaining an Outperform rating. The firm highlighted AI initiatives supporting margin discipline by keeping headcount flat or declining, freeing capital for marketing and growth investments.
PicS N.V. reported first-quarter net revenue of R$3.5 billion, up 70% year-over-year, with adjusted net income rising 92% to R$169 million. Digital wallet payment volume grew 24% to R$134 billion, while its credit portfolio surged 116% to R$28 billion. Wolfe Research also trimmed its target to $15 from $16, citing derivative accounting impacts rather than core operating strength.
Shares traded flat after hours following an earnings beat, with light volume observed. The company exceeded guidance across key metrics, according to its CEO.