DLocal (DLO) Is Up 6.3% After Truist Upgrade On CEO Turnaround Hopes - What's Changed

• Earlier this week, Truist Securities upgraded DLocal from Hold to Buy, pointing to new CEO Pedro Arnt’s turnaround efforts and recent third-quarter earnings that exceeded expectations.
• The upgrade highlights easing worries about pressure on DLocal’s take rates, with Truist’s net take rate outlook now closely matching broader market forecasts.
• Next, we’ll examine how Truist’s renewed confidence in CEO Pedro Arnt’s turnaround efforts could influence DLocal’s broader investment narrative.

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DLocal Investment Narrative Recap

To own DLocal, you have to believe it can keep scaling emerging market payments while defending its take rates and margins against intense competition and regulation. Truist’s upgrade, tied to Pedro Arnt’s turnaround and stronger Q3 results, supports the near term catalyst of confidence in execution, but it does not remove the structural risk of long term take rate pressure or heavy reliance on a concentrated group of large merchants.

The recent Q3 2025 earnings release, with revenue of US$282.48 million and net income of US$51.83 million, is the announcement most closely tied to Truist’s call. Those numbers reinforce the idea that DLocal can grow volumes and profits even as margins come under scrutiny, which matters for investors focused on whether the current turnaround can translate into more durable earnings power and gradual diversification away from its biggest clients.

Yet behind the stronger quarter, investors still need to watch the risk that a few large merchants account for so much of DLocal’s revenue...

Read the full narrative on DLocal (it's free!)

DLocal's narrative projects $1.7 billion revenue and $346.3 million earnings by 2028.

Uncover how DLocal's forecasts yield a $17.39 fair value, a 23% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members have published 23 fair value estimates for DLocal, ranging from US$10 to US$195.39, showing just how far apart individual views can be. When you set those against the recent easing of take rate concerns and stronger Q3 profit trends, it underlines how differently people weigh DLocal’s execution progress versus its ongoing customer concentration and regulatory risks.

Explore 23 other fair value estimates on DLocal - why the stock might be a potential multi-bagger!

Build Your Own DLocal Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your DLocal research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free DLocal research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate DLocal's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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