Market News

BigCommerce, dLocal Join Hands to Grow Footprint in Latin America

Software-as-a-service (SaaS) e-commerce platform BigCommerce (NASDAQ: BIGC) recently revealed that it has entered into a strategic partnership with financial technology company dLocal (NASDAQ: DLO) to widen BigCommerce’s presence in Latin America by enabling cross border and local-to-local payments.

However, following the news, shares of the company declined 1.5% on Thursday. The stock pared its losses slightly to close at $21.89 in the extended trading session.

Off late, BigCommerce has been making strategic moves to broaden its operations in the fast-growing Latin American regions. Plans are also afoot to officially inaugurate its LATAM operations at BigCommerce’s BigNews event in Mexico City on March 24, 2022, with dLocal as their payment partner.

To that end, this strategic partnership with dLocal will allow BigCommerce merchants in the region to accept localized payments, such as local cards, and adopt other alternative payment methods, including Boleto Bancário and Pix in Brazil and Oxxo in Mexico. This is the first region where BigCommerce will offer cards and local payment options.

Management Commentary

The Senior Director of Business Development at BigCommerce, Chad Jaben, said, “dLocal’s knowledge and experience made them a natural partner to power our growth into emerging markets across Latin America. Their strategic knowledge on scaling efficiently and successfully in this market will serve as a critical tool to becoming a stronghold name in the Latin American region.”

Stock Rating

Recently, Stifel Nicolaus analyst J. Parker Lane reiterated a Buy rating on the stock. The analyst, however, lowered the price target from $50 to $35, which implies upside potential of 60% from current levels.

According to the analyst, the supply chain disruptions and the high energy prices prevailing due to the geopolitical tensions are likely to be headwinds for the company in the near future.

The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on eight Buys and six Holds. BIGC average price target of $33.62 implies that the stock has upside potential of 53.7% from current levels. Shares have declined 60% over the past year.

Insider Trading Activity

TipRanks’ Insider Trading Activity tool shows that confidence in BigCommerce is currently Negative based on informative transactions by six insiders over the past three months. Corporate Insiders have sold shares worth $5.7 million over this period.

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