Assessing DLocal: Insights From 4 Financial Analysts

Analysts' ratings for DLocal DLO over the last quarter vary from bullish to bearish, as provided by 4 analysts.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $13.75, a high estimate of $18.00, and a low estimate of $9.00. Observing a 7.84% increase, the current average has risen from the previous average price target of $12.75.

Breaking Down Analyst Ratings: A Detailed Examination

A clear picture of DLocal's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to DLocal. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of DLocal compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of DLocal's stock. This analysis reveals shifts in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of DLocal's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on DLocal analyst ratings.

Unveiling the Story Behind DLocal

DLocal Ltd is focused on making the complex simple, redefining the online payment experience in emerging markets. Through its technology platform, One dLocal, the company enables world-wide enterprise merchants to get paid (pay-in) and to make payments (pay-out) online in a safe and efficient manner. The company earns revenue from fees charged to merchants in connection with payment processing services for cross-border and local payment transactions. The company's geographical segments include Latin America and Non-Latin America with a majority of its revenue being generated from Brazil in Latin America region.

DLocal: Financial Performance Dissected

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Positive Revenue Trend: Examining DLocal's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 8.77% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.

Net Margin: DLocal's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 14.52% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): DLocal's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 6.28%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): DLocal's ROA stands out, surpassing industry averages. With an impressive ROA of 2.53%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.11.

The Basics of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.