Evaluating DLocal: Insights From 9 Financial Analysts

In the preceding three months, 9 analysts have released ratings for DLocal DLO, presenting a wide array of perspectives from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for DLocal, presenting an average target of $12.83, a high estimate of $21.00, and a low estimate of $8.00. Experiencing a 23.54% decline, the current average is now lower than the previous average price target of $16.78.

Interpreting Analyst Ratings: A Closer Look

A comprehensive examination of how financial experts perceive DLocal is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to DLocal. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of DLocal compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for DLocal's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of DLocal's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on DLocal analyst ratings.

Get to Know DLocal Better

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 global 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.

A Deep Dive into DLocal's Financials

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: DLocal displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 34.34%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.

Net Margin: DLocal's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 9.6%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): DLocal's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 3.8%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): DLocal's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.58%, the company showcases efficient use of assets and strong financial health.

Debt Management: DLocal's debt-to-equity ratio is below the industry average. With a ratio of 0.01, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Understanding the Relevance of Analyst Ratings

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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