DLocal’s Stock Stole the Spotlight with a Dash

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There’s a certain charm, I must say, in watching a stock like DLocal (DLO) tiptoe into the limelight with all the confidence of a penguin in a top hat. On Tuesday, it did precisely that, buoyed by the astute (and perhaps slightly mischievous) intervention of Citigroup’s Amon Shirazy, who, like a Jeeves to the company’s bumbling but endearing Bertie Wooster, raised his price target by 16%-a gesture that sent the shares dancing upward by 3% in a market otherwise engaged in a dreary game of musical chairs. The S&P 500, for its part, was merely polishing off its tea with a 0.1% slump, but DLocal, ever the showoff, refused to be upstaged. 🚀

A Price Target with Pizzazz

It was not until the market’s morning tea break that Mr. Shirazy, with the precision of a man who’d just discovered the last scone at a garden party, adjusted his fair value estimate for DLocal to a tidy $17 per share. One imagines him muttering, “How dreadfully dull to have been at $14.60,” before scribbling the new figure with a flourish. His “buy” recommendation, of course, remained as steadfast as a butler’s loyalty, though one might wonder if he’d been bribed with an extra cup of Earl Grey.

The analyst’s jousting with numbers, it seems, was inspired by DLocal’s second-quarter performance-a tale of growth that would make even the most stoic accountant blush. Shirazy, ever the optimist, has upped his 2025 net income forecast by 15% and his 2026 projection by 5%, as if the company were a particularly sprightly terrier with a knack for fetching profits. He argues that despite a slight wobble in transaction volumes, DLocal still has “plenty of growth left in the tank”-a phrase that conjures images of a vintage car with a hidden fuel reserve. At a forward P/E of under 19, he pronounces it “a dashedly clever bargain,” a sentiment one is inclined to agree with, provided one’s definition of “clever” includes a willingness to trust in the arcane art of financial forecasting.

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A Quarter to Remember

DLocal’s second quarter, unveiled in mid-August with all the fanfare of a royal announcement, was a triumph of the sort that makes one’s rivals reach for the smelling salts. The company’s payment volume swelled by 53% year-over-year to a grand total of $9.2 billion, while its revenue, ever the dutiful guest, followed suit with a 50% leap to $256 million. It was a performance that would have made the Queen’s corgis cheer-and the analysts, it must be said, were already applauding.

But the pièce de résistance was DLocal’s decision to raise its 2025 revenue and non-GAAP EBITDA guidance, a move that left the market in a tizzy. One might imagine the boardroom as a drawing room where the host, after a moment of panic, suddenly remembers he’s forgotten to serve the canapés. The result? A flurry of revisions and a collective sigh of relief from investors who, like guests at a dinner party, are always eager to be reassured that the main course is on its way.

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2025-09-17 04:09