DLO Should I Buy
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Dlocal Ltd (DLO) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has shown strong financial growth and analysts maintain a positive outlook, the technical indicators and options data suggest a neutral to slightly bearish sentiment in the short term. Additionally, there are no significant trading signals or catalysts that would warrant immediate action.
The MACD is above 0 but positively contracting, indicating a weakening bullish momentum. The RSI is neutral at 69.427, and moving averages are converging, showing no clear trend. The stock is trading near its pivot point of 13.041 with resistance at 13.805 and support at 12.277, suggesting limited upside potential in the short term.
Strong financial performance in Q4 2025, with revenue up 65.23% YoY, net income up 87.10% YoY, and EPS up 80.00% YoY. Analysts maintain a Buy rating with a price target increase to $16, reflecting confidence in the company's growth potential.
Gross margin dropped by 16.29% YoY, indicating potential cost pressures. No significant insider or hedge fund activity, and no recent congress trading data. The stock's short-term trend suggests a potential decline of up to -1.5% in the next week.
In Q4 2025, DLocal reported strong growth with revenue increasing to $337.89M (up 65.23% YoY), net income rising to $55.54M (up 87.10% YoY), and EPS improving to 0.18 (up 80.00% YoY). However, gross margin decreased to 34.27%, down -16.29% YoY.
Analysts maintain a positive outlook with Truist recently raising the price target to $16 from $15, citing strong volume growth and solid operating performance. However, there is acknowledgment of a faster pace of decline in the net take rate and potential management adjustments to 2026 guidance.
