DLO Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
DLocal Ltd (DLO) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's strong revenue and net income growth, coupled with positive analyst sentiment and its identification as an undervalued stock, make it a compelling choice. While the stock has experienced recent price declines, its long-term growth potential and robust financial performance outweigh short-term volatility.
The technical indicators are mixed. The MACD is positive and contracting, indicating a potential bullish trend. RSI is neutral at 50.668, and moving averages are converging, suggesting indecision in the market. Key support is at 11.379, and resistance levels are at 13.167 and 13.719. The stock has a 70% chance of declining -4.37% in the next week but shows potential for a 1.23% gain in the next month.
Revenue surged by 65% YoY in Q4 2025, with plans to distribute 30% of free cash flow to shareholders.
Analysts maintain a Buy rating with price targets ranging from $15 to $18, reflecting confidence in the company's growth.
DLocal is identified as an undervalued stock with high investment value by multiple sources.
Strong operating performance offsets peer-related multiple compression.
Gross margin dropped by 16.29% YoY in Q4 2025, which may indicate cost pressures.
Recent price decline of -5.07% in the regular market session could deter short-term investors.
Stock trend analysis suggests a potential short-term decline of -4.37% over the next week.
In Q4 2025, DLocal reported a 65.23% YoY increase in revenue to $337.89 million, an 87.10% YoY increase in net income to $55.54 million, and an 80% YoY increase in EPS to $0.18. However, gross margin declined to 34.27%, down 16.29% YoY.
Analysts are optimistic about DLocal, with Truist recently raising the price target to $16 from $15 and maintaining a Buy rating. JPMorgan also maintains an Overweight rating with a price target of $18. Analysts highlight strong volume growth and solid operating performance as key drivers for the stock.
