UBS Upgrades DLocal Limited (DLO) to Neutral

UBS analyst Kaio Prato upgraded DLocal Limited (NASDAQ: DLO) from Sell to Neutral with a price target of $9.00 (from $13.00).

The analyst comments: "We are upgrading dLocal to Neutral, with a new PT of US$9 (from US$13). While we continue to see uncertainties related to TPV mix and take rates, we believe risks are more balanced now. Consensus estimates dropped by 20% after 1Q24 and valuation seems less demanding, as the stock is down ~45% since results last month. Post an EPS miss of ~50% in 1Q24 (more here), we cut our estimates by -21% in 2024-28E, reflecting merchant renegotiation, investments and volatility in Argentina and Nigeria."

For an analyst ratings summary and ratings history on DLocal Limited click here. For more ratings news on DLocal Limited click here.

Shares of DLocal Limited closed at $7.48 yesterday.

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