Dlocal Ltd. (DLO:NSD) Analysts are Bullish with a Strong Buy

STA Research
by: STA Research
Dlocal Ltd.

Analysts rate Dlocal stock with a consensus Strong Buy rating with an average 12-months DLO stock price target of $32.00 per share.

Citigroup rates Dlocal Ltd. as Neutral rating and maintains Dlocal’s stock price target at $26.

Based on the Dlocal stock forecast from 3 analysts, the average analyst Dlocal stock price target is USD 32.00 over the next 12 months. Dlocal Ltd’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Dlocal stock forecast is Neutral, which is based on 7 positive signals and 7 negative signals. At the last closing, Dlocal stock price was USD 29.62Dlocal stock price has changed by -0.44% over the past week, +2.88% over the past month and -54.44% over the last year.

DLocal Limited operates a payments platform in the United States, Europe, China, and internationally. Its payments platform enables merchants to get paid and to make payments online. The company serves commerce, streaming, ride-hailing, financial services, advertising, software as a service, travel, e-learning, on-demand delivery, gaming, and crypto industries. DLocal Limited was founded in 2016 and is headquartered in Montevideo, Uruguay.

 

What we like:

High market capitalization:

DLO stock is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Low volatility:

The annual returns for DLO stock have been stable and consistent compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior return on equity:

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization:

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets:

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow:

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow:

The company had positive total free cash flow in the most recent four quarters.

 

What we don’t like:

Poor risk-adjusted returns:

This company is delivering below median risk-adjusted returns to its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

Below median dividend returns:

The average income yield of DLO stock over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings:

DLO stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value:

Dlocal stock price is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis:

DLO stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Overpriced on free cash flow basis:

Dlocal stock price is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Revenue Growth:

DLO stock has shown below median revenue growth in the previous 5 years compared to its sector

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