Why Analysts Are Rethinking DLocal’s Story After Earnings and Strategic Partnerships

Analyst consensus for DLocal’s stock has shifted, with the average price target rising slightly from $15.17 to $15.94. This adjustment reflects improving sentiment, driven by consistent operating performance and enhanced financial transparency. Stay tuned to discover how you can follow these ongoing shifts in the company’s story and stay informed about future developments.

🐂 Bullish Takeaways

• HSBC upgraded DLocal to Buy from Hold and raised its price target from $11.50 to $15. The firm cites the company’s big EBIT beat, strong transaction volumes, and improved cost control as key reasons for the shift in outlook. Analysts also highlight DLocal’s enhanced disclosures as important for regaining market confidence.

• JPMorgan boosted its price target to $18.50 from $16 while maintaining an Overweight rating. The firm points to updated models that reflect continued robust performance from the company.

• Analysts broadly attribute positive sentiment to DLocal’s consistent execution, improved financial transparency, and effective management of costs despite ongoing investments.

🐻 Bearish Takeaways

• Morgan Stanley raised its price target from $11 to $15 and maintained an Equal Weight rating. While the firm is optimistic about DLocal’s long-term prospects, it cautions that much of the potential growth is already reflected in the current share price. This results in a balanced risk-reward scenario and limited near-term upside.

• UBS raised its price target slightly to $10 from $9 but kept a Neutral rating, reflecting a more cautious stance despite the recent improvements in company performance.

• Valuation concerns and the view that recent upside is largely priced in temper some of the optimism expressed elsewhere on the Street.

Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there’s more to the story. Head to the Simply Wall St Community to discover more perspectives or begin writing your own Narrative!

• DLocal has formed a strategic alliance with Western Union to roll out digital payment methods across Latin America. This partnership is expected to modernize remittance solutions and broaden digital payment access in multiple countries throughout the region.

• The company recently completed a follow-on equity offering, raising $191.25 million by selling 15,000,000 Class A Common Shares at $12.75 per share. The proceeds are intended to support business growth and expansion initiatives.

• DLocal updated its 2025 earnings guidance and is now projecting 30% to 40% year-on-year revenue growth. This outlook underscores the company’s strong financial momentum and positive operating trends.

• Guillermo López Pérez was appointed as the new Chief Financial Officer, bringing significant leadership experience from global financial services companies to DLocal’s executive team.