DLocal (NASDAQ:DLO) Upgraded to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded DLocal from "hold" to "buy," and the stock's consensus rating is a Moderate Buy with an average price target of $17 (1 Strong Buy, 6 Buy, 2 Hold).
• In its most recent quarter DLocal reported $0.18 EPS (meeting estimates) and revenue of $337.89 million, beating expectations and rising 65.2% year-over-year, with a 40.4% ROE and an 18% net margin.
• Institutional investors own ~90.13% of the shares; the company has a market cap of about $3.79 billion and shares trade around $12.86, while analyst price targets vary from roughly $15 to $21 reflecting mixed outlooks.

DLocal (NASDAQ:DLO - Get Free Report) was upgraded by analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued to clients and investors on Sunday.

Several other research firms also recently commented on DLO. JPMorgan Chase & Co. dropped their price objective on shares of DLocal from $18.50 to $18.00 and set an "overweight" rating for the company in a report on Monday, February 2nd. Truist Financial cut their target price on shares of DLocal from $17.00 to $15.00 and set a "buy" rating for the company in a report on Tuesday, March 17th. Weiss Ratings reissued a "hold (c)" rating on shares of DLocal in a research note on Wednesday, January 21st. Finally, Itau BBA Securities initiated coverage on DLocal in a report on Wednesday, December 17th. They issued an "outperform" rating and a $21.00 target price for the company. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $17.00.

DLocal Price Performance

NASDAQ:DLO opened at $12.86 on Friday. DLocal has a one year low of $7.61 and a one year high of $16.78. The company's 50-day simple moving average is $12.60 and its 200 day simple moving average is $13.64. The firm has a market capitalization of $3.79 billion, a P/E ratio of 20.09 and a beta of 1.06.

DLocal (NASDAQ:DLO - Get Free Report) last released its quarterly earnings results on Thursday, March 19th. The company reported $0.18 earnings per share for the quarter, meeting the consensus estimate of $0.18. DLocal had a return on equity of 40.40% and a net margin of 18.00%.The firm had revenue of $337.89 million for the quarter, compared to analysts' expectations of $294.29 million. During the same period in the prior year, the firm earned $0.10 EPS. The company's revenue was up 65.2% compared to the same quarter last year. On average, equities research analysts expect that DLocal will post 0.47 earnings per share for the current fiscal year.

Institutional Investors Weigh In On DLocal

Institutional investors have recently bought and sold shares of the company. Royal Bank of Canada grew its stake in DLocal by 562.7% in the 1st quarter. Royal Bank of Canada now owns 48,668 shares of the company's stock worth $406,000 after acquiring an additional 41,324 shares during the period. Goldman Sachs Group Inc. lifted its holdings in DLocal by 4.1% during the 1st quarter. Goldman Sachs Group Inc. now owns 575,111 shares of the company's stock worth $4,796,000 after buying an additional 22,803 shares during the last quarter. Empowered Funds LLC increased its stake in DLocal by 2.7% during the first quarter. Empowered Funds LLC now owns 48,688 shares of the company's stock valued at $406,000 after purchasing an additional 1,281 shares during the last quarter. Geode Capital Management LLC increased its stake in DLocal by 0.8% during the second quarter. Geode Capital Management LLC now owns 142,677 shares of the company's stock valued at $1,618,000 after purchasing an additional 1,130 shares during the last quarter. Finally, Quantbot Technologies LP acquired a new stake in shares of DLocal during the second quarter worth $254,000. 90.13% of the stock is currently owned by institutional investors and hedge funds.

DLocal Company Profile

dLocal is a fintech company specializing in cross-border payments and payouts for global merchants operating in emerging markets. Headquartered in Montevideo, Uruguay, the company offers a technology platform that simplifies complex payment flows, enabling businesses to connect with local payment methods through a single integration.

The dLocal platform supports a wide range of local payment options, including credit and debit cards, bank transfers, e-wallets and cash-based methods. It incorporates risk-management tools, compliance services and anti-fraud solutions to help clients navigate regulatory requirements and minimize payment failures across diverse jurisdictions.

dLocal serves merchants in sectors such as e-commerce, online marketplaces, digital content and gig economy platforms.

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