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DLocal downgraded to Hold at HSBC on near-term margin pressure

As previously reported before the open, HSBC analyst Neha Agarwala downgraded DLocal to Hold from Buy with a price target of $16, down from $19, after the company reported "mixed" Q4 results and gave Q1 guidance that suggests strong TPV growth but continued pressure on take rates and margin. The firm, which sees continued near-term pressure on gross profit margins, also thinks the company "needs to deliver at least a few steady quarters to regain market credibility."

Published first on TheFly

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