DLocal initiated with a Positive at Susquehanna

Susquehanna initiated coverage of DLocal with a Positive rating and $18 price target. The firm thinks DLocal – a payment processor for global merchants that enables payments for their emerging market customers – is “uniquely positioned” to process payments from emerging market consumers buying from developed market e-commerce merchants. While aware of the risks that come from operating in 40 “sometimes exotic emerging markets,” the firm argues that this “only adds to their value” and that the flywheel for DLocal’s growth is to march their installed base of merchants into new countries while winning new merchants. This flywheel “should help them convert the vast TAM coming to the future of ecommerce from emerging markets,” the analyst tells investors.