Wall Street Zen Upgrades DLocal (NASDAQ:DLO) to Buy

Key Points

• Wall Street Zen upgraded DLocal (NASDAQ:DLO) from hold to buy, adding to a generally positive analyst outlook on the stock.
• Other analysts remain constructive overall: DLocal has a Moderate Buy consensus rating and a consensus target price of $16.78, with several firms reiterating buy or overweight ratings.
• The company’s latest earnings showed revenue of $337.89 million, well above estimates, while EPS came in line at $0.18; revenue also rose 65.2% year over year.

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

Several other equities analysts have also weighed in on DLO. Weiss Ratings restated a "hold (c)" rating on shares of DLocal in a research report on Monday, April 20th. JPMorgan Chase & Co. dropped their target price on shares of DLocal from $18.50 to $18.00 and set an "overweight" rating on the stock in a report on Monday, February 2nd. The Goldman Sachs Group reissued a "buy" rating and set a $17.00 target price on shares of DLocal in a research note on Thursday, April 30th. Finally, Truist Financial reduced 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. One 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. According to MarketBeat, DLocal presently has a consensus rating of "Moderate Buy" and a consensus target price of $16.78.

DLocal Price Performance

DLO opened at $13.70 on Friday. The business has a 50 day moving average price of $12.76 and a two-hundred day moving average price of $13.45. The company has a market capitalization of $4.04 billion, a price-to-earnings ratio of 21.41 and a beta of 1.04. DLocal has a 1-year low of $8.97 and a 1-year high of $16.78.

DLocal (NASDAQ:DLO - Get Free Report) last issued its quarterly earnings results on Thursday, March 19th. The company reported $0.18 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.18. The company had revenue of $337.89 million for the quarter, compared to analysts' expectations of $294.29 million. DLocal had a return on equity of 40.40% and a net margin of 18.00%.The firm's revenue for the quarter was up 65.2% on a year-over-year basis. During the same period last year, the firm earned $0.10 EPS. Equities analysts expect that DLocal will post 0.85 EPS for the current fiscal year.

Institutional Investors Weigh In On DLocal

Hedge funds have recently bought and sold shares of the business. Mitsubishi UFJ Asset Management Co. Ltd. grew its stake in DLocal by 3.5% during the 3rd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 24,793 shares of the company's stock valued at $354,000 after acquiring an additional 837 shares in the last quarter. Caitong International Asset Management Co. Ltd lifted its position in shares of DLocal by 114.6% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,826 shares of the company's stock worth $26,000 after purchasing an additional 975 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of DLocal by 0.8% in the second quarter. Geode Capital Management LLC now owns 142,677 shares of the company's stock worth $1,618,000 after purchasing an additional 1,130 shares in the last quarter. Empowered Funds LLC boosted its holdings in shares of DLocal by 2.7% during the first quarter. Empowered Funds LLC now owns 48,688 shares of the company's stock worth $406,000 after purchasing an additional 1,281 shares during the period. Finally, Osaic Holdings Inc. grew its position in DLocal by 17.1% during the second quarter. Osaic Holdings Inc. now owns 9,108 shares of the company's stock valued at $103,000 after purchasing an additional 1,329 shares in the last quarter. 90.13% of the stock is owned by hedge funds and other institutional investors.

About DLocal

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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