New Analyst Forecast: $DLO Given $8.0 Price Target

Recent analyst ratings for $DLO show a median price target of $12.0, with targets ranging from Wedbush's $8.0 to Citigroup's $14.6, all set on May 27, 2025. Institutional investor activity reveals a net decrease in positions, with 85 firms reducing their holdings and 43 increasing them in the most recent quarter; notably, MARCHO PARTNERS LLP and CANADA PENSION PLAN INVESTMENT BOARD liquidated their entire positions, totaling 2,684,443 and 2,229,033 shares respectively in Q1 2025.

Analysis

DLocal (DLO) faces a mixed analyst outlook and notable institutional selling pressure. A recent price target of $8.0 was established by Wedbush's Yun Zhong on May 27, 2025, marking the lower end of a spectrum that includes a $14.6 target from Citigroup (also dated May 27, 2025) and a median target of $12.0 derived from five analysts' ratings over the past six months. This divergence in analyst views coincides with significant institutional divestment. In the latest reported quarter, 85 institutional investors reduced their DLO holdings compared to 43 who increased them. Prominently, MARCHO PARTNERS LLP and CANADA PENSION PLAN INVESTMENT BOARD fully liquidated their positions in Q1 2025, divesting 2,684,443 shares (valued at approximately $22.4 million) and 2,229,033 shares (valued at approximately $18.6 million), respectively. Additionally, Atmos Capital Gestao de Recursos Ltda. exited its 1,493,806 share position in Q4 2024, and Balyasny Asset Management L.P. reduced its holding by 91.2%, or 901,421 shares, in Q1 2025. This pattern of institutional selling, combined with an overall "strongly negative" sentiment score of -0.7 specifically for DLO, indicates material investor concern and potential headwinds for the stock.

Key Decisions for Investors

• Investors should approach DLO with caution due to the substantial institutional selling, including complete exits by several large funds, and the new $8.0 price target from Wedbush which anchors the lower bound of recent analyst expectations.
• It may be prudent to monitor for signs of abatement in institutional selling activity and a narrowing of the wide dispersion in analyst price targets, which currently range from $8.0 to $14.6, before considering new or increased positions.
• The prevailing negative sentiment and significant institutional outflows warrant a thorough risk assessment for any existing DLO holdings, considering the potential for continued price pressure.