Goldman Sachs has revised its price target for DLocal (DLO, Financial), lowering it to $10 from the previous $11, while maintaining a Neutral rating on the stock as it approaches its first-quarter earnings announcement. The firm anticipates a dip in EBITDA for this period, as Total Payment Volume (TPV) growth decelerates following a robust fourth quarter. Additionally, there are concerns about the net take rate being adversely affected by increased payouts, according to the analyst's note to investors.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for DLocal Ltd (DLO, Financial) is $11.31 with a high estimate of $16.00 and a low estimate of $9.00. The average target implies an upside of 27.82% from the current price of $8.85. More detailed estimate data can be found on the DLocal Ltd (DLO) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, DLocal Ltd's (DLO, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for DLocal Ltd (DLO, Financial) in one year is $34.88, suggesting a upside of 294.12% from the current price of $8.85. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the DLocal Ltd (DLO) Summary page.
DLO Key Business Developments
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- DLocal Ltd (DLO, Financial) achieved a record TPV of $26 billion in 2024, marking a 45% year-over-year increase.
- The company delivered a gross profit of $295 million and maintained a strong adjusted EBITDA over gross profit margin of 64%.
- DLocal Ltd (DLO) expanded its team significantly, adding 194 new talents, particularly in technology and product development.
- The company launched 20 new payment methods for pay-ins and seven for payouts, enhancing its product offerings.
- DLocal Ltd (DLO) secured nine new licenses globally, expanding its product offerings and access to new growth opportunities.
Negative Points
- The company experienced a decline in gross profit in its largest markets, Brazil and Mexico, despite overall growth.
- Currency devaluations, particularly in Nigeria, negatively impacted revenue growth.
- There was a noted compression in the net take rate due to higher volumes driving lower take rates and increased payout share.
- DLocal Ltd (DLO) faced challenges with temporary settlement delays and changes in settlement periods affecting cash flow.
- The company anticipates potential tightening of FX spreads in certain geographies, which could impact financial performance.
