Why DLocal Stock Topped the Market on Tuesday

Citigroup analyst Amon Shirazy increased his price target for fintech DLocal (DLO) by 16% to $17, reiterating a buy rating following the company's robust Q2 performance. DLocal reported a 53% year-over-year surge in total payment volume to $9.2 billion and 50% revenue growth to $256 million, alongside an upward revision of its 2025 revenue and non-GAAP EBITDA guidance. Shirazy subsequently raised his 2025 and 2026 net income forecasts, noting the stock's attractive valuation at a forward P/E below 19 for 2026 profitability, which propelled DLO shares over 3% higher.

Analysis

DLocal (DLO) has received a significant vote of confidence from Citigroup, whose analyst raised the price target by 16% to $17 per share while maintaining a 'buy' rating. This revision is directly tied to the company's impressive second-quarter performance, which saw Total Payment Volume (TPV) surge 53% year-over-year to $9.2 billion and revenue grow 50% to $256 million. The strong results prompted DLocal to raise its own full-year 2025 guidance for revenue and adjusted EBITDA, reinforcing the positive outlook. In response, the Citigroup analyst increased net income forecasts for 2025 and 2026 by 15% and 5%, respectively. The analyst's thesis posits that the stock remains a bargain, trading at a forward P/E of less than 19 based on 2026 profitability estimates, and retains significant growth potential despite a mention of 'declining volumes,' a point that may warrant further clarification. The market reacted favorably, with DLO's stock climbing over 3% against a minor decline in the S&P 500, indicating strong investor reception to the analyst's upgraded view.

Key Decisions for Investors

• Investors should view the combination of robust 50%+ year-over-year growth in key metrics, upwardly revised corporate guidance, and a new $17 price target from Citigroup as a strong validation of DLocal's growth trajectory.
• The valuation appears attractive for a high-growth company, with a forward P/E below 19 on 2026 estimates presenting a potential 'growth at a reasonable price' (GARP) opportunity that warrants further due diligence.
• It is critical to investigate the analyst's reference to 'declining volumes' to understand if this points to a sequential slowdown or weakness in a specific segment, as it contrasts with the strong year-over-year TPV growth reported.