What led to PagSeguro Digital Ltd (NYSE: PAGS) stock rise

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PagSeguro Digital Ltd (NYSE: PAGS) stock rose over 6.3% on May 29th, 2020 (as of 10:06 am GMT-4; Source: Google finance) after the company in the first quarter of FY 20 has reported the R$1,587.3 million in total Revenue and Income, up 26.9% compared to 1Q19 and up 0.8% compared to 4Q19 despite the COVID-19 pandemic and 4Q19 seasonality. The company has delivered R$367.0 million in non-GAAP Net Income, which reflects an increase of 12.8% compared to 1Q19. The revenue from transaction activities and other services in the three months ended March 31, 2020 amounted to R$966.8 million, which is an increase of 35.6%, from R$713.0 million in the three months ended March 31, 2019 due to a continued increase in the active merchant base and TPV. The company’s non-GAAP Profit before income taxes amounted to R$511.5 million in the three months ended March 31, 2020, which rose by 8.1% from R$473.2 million in the three months ended March 31, 2019. Cash and cash equivalents at the end of the three months ended March 31, 2020 were of total R$3,043.2 million

Meanwhile, during the first quarter, the company had signed partnerships with Cabify and Shell gas stations.  With the new partnership with Cabify, the company will offer exclusive benefits for Cabify partner drivers. Cabify drivers who have a PagBank account will receive their cash up to three times per week (currently, Cabify drivers receive payments only once per week). In the future, the company expects that Cabify drivers will eventually be able to receive their cash on a daily basis.  Further, this partnership expands the PagBank Super app portfolio, as it will allow PagBank users to request and pay for Cabify services directly in the PagBank app. Another new functionality is the integration of the PagBank payment method directly in the Cabify app, further expanding payment methods for Cabify users.  In addition, through the partnership with the Shell brand, PAGS users are able to refuel their vehicles at one of the 2,000 Shell Box stations, paying directly through our PagBank app and receiving cash back rewards. This new functionality started on March 5, 2020 at more than 2,000 Shell Box stations in Brazil. Pagbank users will receive 10 reais of cash back on the first five refuels with a minimum of 50 reais.

On the other hand, KeyBanc Capital Markets has raised the price target on the Brazil-based financial technology company to $32 a share from $20 to factor in digital acceleration prospects and it looks for greater clarity on the PagBank app and online acceleration.

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