DLocal Stock Surges 31% After HSBC Upgrade and Raises Price Target to $15

DLocal (DLO) stock jumped 31% after HSBC upgraded the stock from Hold to Buy, citing strong Q2 results and a raised price target to $15. The company beat EBIT expectations and showed strong payment volumes. HSBC also increased its earnings forecasts for 2025-2027, expecting a 4-9% higher net income.

July 02, 2025

HSBC Holdings plc has significantly upgraded its rating for DLocal (DLO) from "Hold" to "Buy," raising its price target to $15 from $11.5. This move comes after DLocal's strong performance in the second quarter of 2025, as reported in the company's earnings release [3]. The upgrade reflects HSBC's growing confidence in DLocal's ability to capitalize on the expanding digital payments market.

DLocal's stock price surged by 31% following the upgrade, underscoring investor confidence in the company's prospects. The company reported a total payment volume (TPV) of $9.2 billion, marking a record high and a 50% year-over-year increase for the third consecutive quarter. DLocal's earnings before interest, taxes, and amortization (EBIT) exceeded expectations, and the company's operational leverage continued to improve, with adjusted EBITDA over gross profit increasing for the fifth straight quarter to 71% [3].

HSBC has also revised its earnings forecasts for DLocal, expecting net income to grow by 4-9% annually from 2025 to 2027. The financial services giant has long been a supporter of DLocal, having invested in its growth and expansion into new markets. The upgrade to "Buy" and the higher price target indicate that HSBC believes DLocal's stock is undervalued and has significant upside potential [1].

The upgrade is a reflection of the broader trend in the financial services industry, where companies are increasingly investing in digital payments and fintech solutions. DLocal's ability to provide a seamless and secure payments experience for businesses and consumers has made it an attractive investment opportunity [1].

While the upgrade is positive news for DLocal investors, it is important to note that the stock market is volatile and subject to various risks. Investors should carefully consider their investment objectives and risk tolerance before making any investment decisions [1].

References:
[1] https://www.ainvest.com/news/hsbc-upgrades-dlocal-buy-raises-pt-15-11-5-2508/
[2] https://www.marketbeat.com/instant-alerts/filing-entropy-technologies-lp-increases-stock-holdings-in-hsbc-holdings-plc-nysehsbc-2025-08-11/
[3] https://www.finanznachrichten.de/nachrichten-2025-08/66177609-dlocal-limited-dlocal-reports-2025-second-quarter-financial-results-399.htm