Should I Buy DLO? DLO 2026 Analysis

Should You Buy Dlocal Ltd (DLO) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

14.040

1 Day change

-2.90%

52 Week Range

16.780

Analysis Updated At

2026/01/28

Buy now for a beginner long-term investor. DLO is showing a constructive uptrend (bullish moving averages + improving MACD), supportive options positioning (very low put/call open interest), and strengthening Wall Street sentiment (upgrades + higher targets). With the investor being impatient and not waiting for an “ideal” entry, the current ~$14.5 area is a reasonable long-term entry, with the next technical upside zone around $14.73–$15.11.

Technical Analysis

Trend is bullish-to-improving. The moving averages are stacked positively (SMA_5 > SMA_20 > SMA_200), which typically signals an established uptrend. MACD histogram is above zero and expanding (0.00775), reinforcing positive momentum. RSI(6) at ~55 is neutral, suggesting the stock is not extended and still has room to run. Key levels: Pivot ~14.11 as the near-term line-in-the-sand; resistance at R1 ~14.73 then R2 ~15.11; supports at S1 ~13.50 and S2 ~13.12. Price is currently ~14.46 regular / ~14.53 post-market, sitting just below first resistance—consistent with a near-term breakout attempt rather than a stretched move.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Options sentiment leans bullish. Put/call open interest ratio at 0.17 is very call-heavy, usually indicating bullish positioning. Put/call volume ratio at 0.77 is less extreme (still not overly bearish), implying day-to-day flow is more balanced than the open-interest picture. Implied volatility is high (~61%) and above recent realized vol (~60%), and activity is elevated versus the 30-day average (today’s volume vs avg ~26.6%), suggesting the market is actively pricing potential movement.

Technical Summary

Sell

Buy

Positive Catalysts

1) Improving technical momentum with bullish MA structure and positive MACD. 2) Analyst sentiment has recently improved (upgrade + raised targets), which can attract incremental long-only demand. 3) Fundamental growth remains strong (Q3 2025 revenue +52% YoY; EPS +89% YoY), supporting a long-term thesis. 4) Recent media/news tone highlights potential for meaningful 2026 upside and growth in emerging markets, keeping the narrative constructive.

Neutral/Negative Catalysts

1) Profitability quality flag: gross margin fell to 36.53% in 2025/Q3 (-13.19% YoY), so growth is strong but margin pressure is a key risk to monitor. 2) The stock is still far below prior peak levels (noted as ~down 80% from peak), meaning the name can remain sentiment-sensitive and require continued execution to re-rate. 3) Options imply high volatility (~61% IV), which typically coincides with larger price swings (even if the longer-term direction is positive).

Financial Performance

Latest quarter provided: 2025/Q3. Revenue grew to ~$282.5M (+52.06% YoY), net income rose to ~$51.8M (+93.51% YoY), and EPS increased to $0.17 (+88.89% YoY). These are strong growth trends. The main offset is profitability mix/efficiency: gross margin declined to 36.53% (-13.19% YoY), so the key question for long-term investors is whether DLO can sustain high growth while stabilizing or rebuilding margins.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent trend is clearly improving. (1) Truist upgraded DLO to Buy from Hold on 2025-12-11 and raised PT to $16 (from $15). (2) Itau BBA initiated with Outperform and a $21 PT on 2025-12-17. (3) Truist raised PT again to $17 on 2026-01-20 and reiterated Buy, citing expectations for solid Q4 results and more constructive 2026 outlook. Wall Street pros view: Pros—stabilizing growth expectations in cross-border/emerging market payments and improving valuations after underperformance. Cons—tougher year-over-year comps and the possibility management tempers 2026 guidance; margin pressure (seen in Q3) is an ongoing debate point. Politicians/congress trading: no recent congress trading data available. Hedge funds/insiders: both neutral with no notable recent trend.

3 Analyst Rating

Wall Street analysts forecast DLO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DLO is 16.67 USD with a low forecast of 15 USD and a high forecast of 19 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

2 Buy

1 Hold

0 Sell

Moderate Buy

Current: 14.460

Low

Averages

16.67

High

Current: 14.460

Low

Averages

16.67

High

Truist

Buy

maintain

$16 -> $17

AI Analysis

2026-01-20

Reason

Truist

Price Target

$16 -> $17

AI Analysis

2026-01-20

maintain

Buy

Reason

Truist raised the firm's price target on DLocal to $17 from $16 and keeps a Buy rating on the shares as part of a broader research note previewing Q4 earnings in FinTech. The quarter's results should be solid, although a tougher y/y comparison may limit volume-related beats, and while Truist is optimistic on the group throughout 2026, some management teams may look to reset Street expectations a bit lower with their original 2026 guidance, the analyst tells investors in a research note.

Itau BBA

William Barranjard

Outperform

initiated

$21

2025-12-17

Reason

Itau BBA

William Barranjard

Price Target

$21

2025-12-17

initiated

Outperform

Reason

Itau BBA analyst William Barranjard initiated coverage of DLocal with an Outperform rating and $21 price target.

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DLO Should I Buy

DLO Should I Buy

Should You Buy Dlocal Ltd (DLO) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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