DLocal (DLO – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Jorge Kuri from Morgan Stanley downgraded the rating on the stock to a Hold and gave it a $10.00 price target.
Jorge Kuri has given his Hold rating due to a combination of factors influencing DLocal’s financial performance and future prospects. The company reported net income growth, but it fell short of both Morgan Stanley’s and the consensus estimates, indicating weaker-than-expected results. While there was some positive performance in Total Payment Volume (TPV) and revenue aligning with expectations, the contraction in revenue take rate and gross take rate, along with higher-than-expected expenses, presented concerns.
Additionally, the 2025 guidance provided by DLocal was mixed, with some metrics surpassing consensus while others fell short. Despite the company’s potential for growth in emerging markets and its competitive advantages, the softer-than-expected guidance led to a revision of future earnings estimates. Consequently, the valuation does not support an Overweight rating at the current price, prompting a Hold recommendation as the firm waits for a more favorable entry point.
In another report released today, Barclays also maintained a Hold rating on the stock with a $10.00 price target.