UBS analyst Kaio Prato upgraded DLocal to Buy from Neutral with a price target of $20, up from $16. The firm sees a "strong growth path" with improving operating leverage for DLocal. The shares have re-rating potential given the rising market confidence after a series of solid results from the company, the analyst tells investors in a research note. UBS believes DLocal's growth will be supported by rising global digitalization, lower e-commerce penetration in emerging markets, and expansion into new geographies. It sees a "compelling multiple" at current share levels.
