Shares of emerging markets payments specialist DLocal (DLO 3.24%) rose 10% this week as of 11 a.m. ET on Friday, according to data provided by S&P Global Market Intelligence.
The main reason for this increase ties to a Goldman Sachs analyst upgrading the stock from neutral to buy, while raising their price target on DLocal from $12 to $19.
What makes this upgrade noteworthy for investors is that DLocal's stock has already spiked 76% in just the last six months, so the analyst believes there is still room to run.
NASDAQ: DLO
Key Data Points
DLocal: Connecting merchants to emerging markets
DLocal helps its 758 enterprise merchants process payments with over 2 billion potential customers in emerging markets across Latin America, Africa, and Asia.
Working with a who's-who of customers such as Amazon, Shopify, Spotify, Uber, and Netflix, DLocal continues to deliver blistering growth, with total payment volume rising 53% in its latest quarter.
Image source: Getty Images.
Offering 900 different local payment options to its merchant customers, DLocal's value proposition is undeniable, as it helps these massive companies sell their products to customers who were previously difficult (if not impossible) to reach.
DLocal expects the size of this emerging market digital payments industry to double from $2.1 trillion to $4.2 trillion by 2030, providing the company with a strong tailwind.
However, in an effort to get the best payment options and customers on its platform, DLocal's take rate temporarily suffered as it offered alluring deals to attract and retain the best of the best.
Is DLocal a buy?
That said, the company's take rate finally improved last quarter, and it may be starting to turn the corner.
Trading at just 22 times forward earnings while growing revenue by 50%, DLocal is an exciting growth stock to consider today.
