Novo Nordisk, Eli Lilly fall after Trump comments on weight loss drug pricing
Investing.com - Goldman Sachs has upgraded DLocal Limited (NASDAQ:DLO) from Neutral to Buy and raised its price target to $19.00 from $12.00, representing a potential 40% upside from current levels. This aligns with InvestingPro’s analysis, which indicates DLocal is currently undervalued, supported by the company’s strong financial health score and impressive 66.76% return over the past year.
The upgrade comes as Goldman Sachs analyst Tito Labarta expressed greater confidence in DLocal’s ability to deliver over 20% EBITDA growth in the mid-term. The firm expects solid total payment volume (TPV) growth through 2027. Current financials support this outlook, with DLocal reporting $188.85M in EBITDA and maintaining a healthy 22% revenue growth rate.
Goldman Sachs identified three key growth drivers for DLocal: successful geographical diversification, gaining market share with existing merchants, and attracting new merchants, including stablecoin operators. The firm also noted that DLocal has room for further cost control measures that can partially offset sensitivity to volumes. For deeper insights into DLocal’s growth potential and financial metrics, check out the comprehensive Pro Research Report available on InvestingPro.
Despite recent outperformance following raised guidance in the second quarter of 2025, Goldman Sachs believes DLocal’s valuation remains relatively discounted. The stock currently trades at 10.0x 2026 estimated EV/EBITDA, which is 49% below its three-year historical average.
The current valuation also sits below global peers’ average of 13.9x, while DLocal is expected to deliver a 2024-2027 estimated EBITDA compound annual growth rate of 31%, compared to peers’ average of 15%.
In other recent news, DLocal Limited announced the completion of a secondary offering of 17.25 million Class A common shares by an entity associated with General Atlantic, priced at $12.75 per share. The offering included the full exercise of the underwriters’ option to purchase an additional 2.25 million shares, although DLocal will not receive any proceeds from this transaction as it did not sell any shares. Citi has raised its price target for DLocal to $17.00 from $14.60, maintaining a Buy rating following the company’s strong second-quarter 2025 results and upgraded guidance for the full year 2025. Susquehanna also reiterated its Positive rating on DLocal with an $18.00 price target, citing robust total payment volume trends and growing traction for newer services. These developments highlight the company’s ongoing performance and strategic moves in the market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.