DLocal's analyst price target has increased from $15.94 to $16.61. Analysts cite improved growth expectations, stronger margins, and more consistent performance as factors driving greater confidence in the company's outlook.

Analyst Commentary

Recent updates from Street research reflect both increasing optimism and remaining caution in the analyst community regarding DLocal's future performance. Multiple firms have revised their price targets upward. Analysis of the company’s execution and fundamentals continues to shape sentiment.

Bullish Takeaways

• Bullish analysts have raised price targets, citing improved earnings momentum following quarterly results and stronger operational execution.
• Consistent performance and enhanced financial disclosures over the past year are seen as key steps towards regaining market confidence.
• Notable improvements in cost management have occurred, even as ongoing investments in personnel and technology support profit margin expansion.
• Updated valuation models reflect increased confidence in DLocal's long-term growth potential. Some analysts maintain overweight or buy ratings.

Bearish Takeaways

• Some analysts remain neutral, noting that much of the company's long-term growth prospects may already be reflected in the current share price.
• The risk-reward profile is described as balanced, with only modest near-term upside seen for the stock amid ongoing market and competitive uncertainties.
• While execution has improved, certain analysts prefer to remain on the sidelines until more evidence of sustained outperformance becomes clear.

What's in the News

• DLocal and Western Union have formed a strategic alliance to enable digital payment methods for Western Union's online platforms across key Latin American countries. This alliance expands local payment options and supports digital remittance growth (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 each with a per share discount (Key Developments).
• The company updated its 2025 earnings guidance and is projecting 30% to 40% year-on-year revenue growth. This outlook is based on strong first-half results and ongoing market momentum, though the company advises caution due to global economic and currency risks (Key Developments).
• Guillermo López Pérez was appointed as Chief Financial Officer and brings 25 years of experience from companies including Visa, American Express, and Featurespace (Key Developments).

Valuation Changes

• Consensus Analyst Price Target has increased slightly from $15.94 to $16.61. This reflects improved sentiment regarding projected performance.
• Discount Rate is up modestly, rising from 9.20% to approximately 9.23%. This indicates minor adjustments in perceived risk or cost of capital.
• Revenue Growth expectations have edged up, with projected growth moving from 26.27% to 26.86% year-over-year.
• Net Profit Margin forecasts have risen slightly, from 20.07% to 20.36%. This suggests expectations for incremental improvements in operational efficiency.
• Future P/E ratio has ticked up from 19.04x to 19.30x. This signals a small increase in valuation multiples applied to future earnings.