UBS Group Reiterates Neutral Rating for DLocal (NASDAQ:DLO)

Key Points

• UBS Group analysts have raised their target price for DLocal from $9.00 to $10.00, maintaining a "neutral" rating, indicating a potential downside from the stock's previous close.
• Several analysts have differing ratings for DLocal, with Citigroup giving it a "buy" rating at a $14.60 target and Truist Financial rating it as "hold" at $12.00.
• DLocal reported earnings per share of $0.15 for the last quarter, surpassing expectations, with a significant year-over-year revenue increase of 17.6% to $216.76 million.

DLocal (NASDAQ:DLO - Get Free Report)'s stock had its "neutral" rating restated by stock analysts at UBS Group in a research note issued to investors on Wednesday, MarketBeat reports. They currently have a $10.00 price objective on the stock, up from their previous price objective of $9.00. UBS Group's price objective indicates a potential downside of 0.10% from the stock's current price.

A number of other analysts have also issued reports on DLO. Truist Financial began coverage on DLocal in a research note on Monday, June 2nd. They set a "hold" rating and a $12.00 price objective on the stock. Citigroup began coverage on DLocal in a research note on Tuesday, May 27th. They issued a "buy" rating and a $14.60 target price on the stock. Finally, Susquehanna upped their target price on DLocal from $16.00 to $18.00 and gave the stock a "positive" rating in a research note on Thursday, May 15th. Six research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company's stock. According to data from MarketBeat.com, DLocal currently has a consensus rating of "Hold" and a consensus target price of $12.18.

DLocal Stock Performance

Shares of NASDAQ:DLO traded down $0.25 during midday trading on Wednesday, reaching $10.01. 1,469,331 shares of the company traded hands, compared to its average volume of 1,011,015. The company has a quick ratio of 1.65, a current ratio of 1.65 and a debt-to-equity ratio of 0.01. DLocal has a 12 month low of $6.57 and a 12 month high of $14.26. The firm has a market capitalization of $2.86 billion, a price-to-earnings ratio of 20.43 and a beta of 1.10. The firm's fifty day moving average price is $10.79 and its two-hundred day moving average price is $10.54.

DLocal (NASDAQ:DLO - Get Free Report) last released its quarterly earnings data on Wednesday, May 14th. The company reported $0.15 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.12 by $0.03. DLocal had a return on equity of 37.55% and a net margin of 19.19%. The company had revenue of $216.76 million for the quarter, compared to analyst estimates of $213.52 million. During the same period in the previous year, the company posted $0.06 EPS. The firm's revenue for the quarter was up 17.6% compared to the same quarter last year. On average, equities analysts expect that DLocal will post 0.47 earnings per share for the current year.

Hedge Funds Weigh In On DLocal

A number of hedge funds and other institutional investors have recently modified their holdings of DLO. Azora Capital LP purchased a new position in shares of DLocal in the 4th quarter worth about $37,144,000. Canada Pension Plan Investment Board purchased a new position in shares of DLocal in the 4th quarter worth about $25,099,000. J. Goldman & Co LP boosted its holdings in shares of DLocal by 175.5% in the 4th quarter. J. Goldman & Co LP now owns 1,351,181 shares of the company's stock worth $15,214,000 after purchasing an additional 860,681 shares in the last quarter. BNP Paribas Financial Markets purchased a new position in shares of DLocal in the 4th quarter worth about $5,720,000. Finally, Tikvah Management LLC boosted its holdings in shares of DLocal by 115.6% in the 4th quarter. Tikvah Management LLC now owns 901,800 shares of the company's stock worth $10,154,000 after purchasing an additional 483,500 shares in the last quarter. 90.13% of the stock is currently owned by hedge funds and other institutional investors.

About DLocal

DLocal Limited operates a payment processing platform worldwide. The company offers pay-in solution which the business and get paid for their products and services through various payment methods, including international and local cards, online bank transfers and direct debit, cash, and alternative payment methods.