Up-and-coming fintech DLocal (DLO -2.16%) emerged a little more on Tuesday, thanks to an analyst's price target increase. Investors seemed to agree with the move, as they bid the stock up by more than 3% on the day. It was up on a slightly down session for equities overall, as the benchmark S&P 500 index slid by 0.1%.
A 16% price target boost
Well before market open, Citigroup's Amon Shirazy upped his fair value assessment on DLocal. His new price target is an even $17 per share, up 16% from his previous level of $14.60. In making the change, Shirazy maintained his buy recommendation on the specialty finance sector stock.
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The pundit's modification is based heavily on DLocal's second-quarter performance, according to reports. Shirazy raised his net income forecast for full-year 2025 by 15% over his previous estimate and boosted his 2026 projection by 5%.
The analyst said that while DLocal's volumes were declining, the company still has plenty of growth left in the tank. As the company trades at a forward P/E of less than 19 on estimated 2026 profitability, he feels it is still a bargain.
Beat and raise
Any way you look at it, DLocal's second quarter -- the results of which were disseminated in mid-August -- was impressive. The company managed to increase its total payment volume by a robust 53% year over year to $9.2 billion while delivering near-comparable (50%) revenue improvement at $256 million.
Better, the company raised its revenue and non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance for the entirety of 2025.
