DLocal jumps 22% after HSBC upgrades to Buy on Q2 EBIT beat

[Woman paying through credit card in store]
Klaus Vedfelt

DLocal (NASDAQ:DLO [https://seekingalpha.com/symbol/DLO]) jumped as much as 22.41% to $14.31 on Thursday after the Uruguayan fintech was upgraded to Buy from Hold by HSBC following its Q2 results [https://seekingalpha.com/news/4484905-dlocal-gaap-eps-of-0_14-beats-by-0_01-revenue-of-256_5m-beats-by-26_84m].

HSBC’s decision came on the back of DLO’s Q2 EBIT beat, despite some one-off trends and continued strong volumes. It also raised the payments firm’s target price for DLO to $15, representing a 28.31% upside from Thursday’s close.

The brokerage added that better-than-expected cost control, despite continued investment in staff and technology, along with new innovative products that strengthen its position in a mostly commoditized industry, and capital optimisation, have boosted its optimism.

“In view of the significant long-term growth potential for dLocal along with tangible momentum witnessed in the past few quarters, we believe it is on the right path,” analyst Neha Agarwala noted.

The company will start exhibiting more operational leverage beginning in 2026, the analysts added.

HSBC has raised its 2025–27 EPS forecasts for DLO by 6% - 9%. The bank lifted its 2025 gross profit estimate to $396 million, slightly above the midpoint of the revised guidance range, and increased its 2025–27 net income projections by 4% - 9%.

Overall, Wall Street analysts have issued a Buy call for the stock. Seeking Alpha analysts also echoed similar sentiments. However, as per Seeking Alpha’s quant ratings, it is recommended to Hold DLO.

DLocal shares have jumped by over 25% on a year-to-date basis compared to a nearly 10% rise in the broader S&P500 index.

MORE ON DLOCAL

* DLocal: A Great Bet On Emerging Markets And FinTech [https://seekingalpha.com/article/4805029-dlocal-stock-great-bet-on-emerging-markets-and-fintech]
* dLocal appoints Guillermo López Pérez as Chief Financial Officer [https://seekingalpha.com/news/4484925-dlocal-appoints-guillermo-lopez-perez-as-chief-financial-officer]
* dLocal Q2 2025 Earnings Preview [https://seekingalpha.com/news/4484286-dlocal-q2-2025-earnings-preview]