DLocal downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded DLocal (DLO) to Equal Weight from Overweight with a price target of $10, down from $11. The company reported weaker than expected results, missing consensus expectations by a wide margin, the analyst tells investors in a research note. The firm cut estimates and downgrades the shares on valuation, following DLocal’s 60% rally over the past six months. It remains “highly constructive” on the long-term growth opportunity for DLocal, but waits for a better entry point.