DLocal (DLO) stock rallied on Tuesday after the payments platform operator received updated coverage from Goldman Sachs analysts. The firm’s analysts upgraded DLO stock to a Buy rating from a Neutral rating. They also increased the price target for DLO to $19 per share from $12 per share, representing a possible 25.6% upside for the shares.
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Goldman Sachs provided clients with a few reasons why it upgraded DLocal. The firm cited confidence in the company’s ability to deliver EBITDA growth of more than 20% in the midterm. It also highlighted solid payment growth through 2027, powered by geographical diversification, market share gains with current merchants, and its ability to attract new merchants.
Goldman Sachs’ updated coverage marks the first time in over a month that an analyst has weighed in on the company. The previous analyst coverage of DLO stock came from Susquehanna analyst James Friedman, who reiterated a Buy rating and an $18 price target, implying a 17.57% upside. The analyst cited many of the same reasons as Goldman Sachs alongside his bullish rating for the shares, as well as resilience in areas with macroeconomic headwinds.
DLocal Stock Movement Today
DLocal stock was up 7.22% on Tuesday, building on a 32.34% rally year-to-date. The stock has also surged 59.73% over the past 12 months. That’s despite muted trading volume with some 1.51 million shares traded, compared to a three-month daily average of about 2.86 million units.
Is DLocal Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for DLocal is Moderate Buy, based on four Buy and three Hold ratings over the past three months. With that comes an average DLO stock price target of $15.36, representing a potential 1.72% upside for the shares.
