Analysts have raised their average price target on DLocal from $15.17 to $15.94, citing improving growth prospects, profit margins, and continued confidence in the company's operational execution.
Analyst Commentary
Recent updates from major research firms reflect a dynamic outlook on DLocal, with analysts revising their valuations and highlighting different factors influencing the company's trajectory.
Bullish Takeaways- Bullish analysts point to consistent improvements in DLocal's operating performance, particularly highlighting an EBIT beat and sustained strong transaction volumes.
- The company has enhanced financial disclosures over the past year, contributing to greater transparency and boosting investor confidence.
- Strong cost control has been maintained, even as investments in personnel and technology continue. This indicates effective management execution.
- Some analysts have updated their models and expressed confidence in DLocal’s long-term growth prospects. This is reflected in multiple upward revisions of price targets, including a notable increase to $18.50 from $16 at JPMorgan.
- Bearish analysts remain on the sidelines due to a perceived balanced risk-reward. They suggest only modest near-term upside given recent stock performance.
- Despite the positive long-term outlook, some believe much of DLocal’s potential is already priced into the current share value, which may limit immediate gains.
- Not all analysts upgraded their rating, reflecting ongoing caution about valuation and the need for further evidence of sustained growth momentum.
What's in the News
- dLocal and Western Union announced a strategic alliance to enable digital payment methods on Western Union's platforms across Latin America. The partnership aims to modernize remittance solutions and expand digital payment options to several countries in the region (Key Developments).
- DLocal completed a follow-on equity offering, raising $191.25 million through the sale of 15,000,000 Class A Common Shares at $12.75 per share, with a discount of $0.3825 per security (Key Developments).
- The company updated its 2025 earnings guidance, now expecting 30% to 40% year-on-year revenue growth. This update reflects strong ongoing performance and momentum (Key Developments).
- DLocal appointed Guillermo López Pérez as the new Chief Financial Officer, strengthening its leadership team. Guillermo brings over 25 years of experience from leading roles at Visa, American Express, and Featurespace (Key Developments).
- Certain Class A and Class B Common Shares are subject to a lock-up agreement ending December 3, 2025. This agreement restricts sale or transfer for 91 days starting September 3, 2025 (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen slightly from $15.17 to $15.94, reflecting increased confidence in DLocal's fair value.
- Discount Rate has fallen marginally, moving from 9.29% to 9.20%. This suggests lower risk assumptions in updated models.
- Revenue Growth projections have increased modestly, with expected year-on-year growth rising from 25.99% to 26.27%.
- Net Profit Margin estimates have inched up from 20.03% to 20.07%. This indicates ongoing expectations for stable profitability.
- Future P/E Ratio has increased from 18.32x to 19.04x, suggesting a modestly higher valuation multiple anticipated for future earnings.
Disclaimer
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