DLocal upgraded to Overweight from Neutral at JPMorgan

JPMorgan analyst Guilherme Grespan upgraded DLocal (DLO) to Overweight from Neutral with a price target of $18, up from $14. Now is a good entry point as expectations are lower and JPMorgan expects a solid growth path ahead for DLocal, the analyst tells investors in a research note. The firm says Argentina should move from a “headwind to tailwind” with system card payment volume growing close to 100% in U.S. dollars while Brazil should be less of a headwind representing now 20% of gross profit versus 37% a year ago. In addition, Egypt, Africa and smaller Latin America countries should continue to be major drivers of payment volume and large currency spreads should boost gross profit contribution, JPMorgan adds.