Analyst Maintains Hold as Margin Pressures Persist, Trimming Price Target from $15 to $14.50

Morgan Stanley analyst Jorge Kuri maintained a Hold rating on DLocal today and set a price target of $14.50.

Jorge Kuri has given his Hold rating due to a combination of factors, balancing solid top-line momentum against weaker profitability and pricing pressure. While transaction volumes and revenues expanded rapidly across regions and verticals, the quarter’s net income declined and fell short of expectations, reflecting higher taxes and operating costs that weighed on overall earnings.

Kuri also points to the ongoing compression in gross profit take rates, driven by volume discounts, product and geographic mix shifts, and faster growth among large merchants, as a key overhang for the stock. Management’s cost-control plans and the company’s growing strategic relevance with merchants are positives, but lingering concerns around margins and monetization lead him to maintain a neutral stance and trim the price target from $15 to $14.50.