Truist Stands By DLocal With Price Target Hike, Eyes Strong Q4 Amid Tough Comparisons

Fintech platform DLocal Limited (NASDAQ: DLO) received a vote of confidence from Truist Securities this week, as the analyst firm lifted its price target on the stock while maintaining a Buy rating ahead of the company's fourth-quarter 2025 report.

In a research note circulated to clients on January 20, Truist increased its price target for DLocal to $17, up from $16. The move signals the firm's expectation of a "solid performance" for the quarter, though analysts tempered optimism by noting that DLocal faces "challenging" year-over-year volume comparisons which could limit its ability to dramatically surpass market expectations.

The note also provided a broader outlook for the fintech sector heading into 2026. Truist expressed general optimism for the group's trajectory but suggested investors brace for potential shifts in tone from company management. "We would not be surprised to see some management teams issue more conservative initial guidance for 2026," the analysts wrote, indicating a sector-wide effort to reset Wall Street expectations to more achievable levels after a period of rapid growth.

DLocal, which operates a cross-border payments platform connecting global merchants with emerging markets, has been garnering analyst attention. The Truist update follows coverage initiated in December by Itaú BBA analyst William Barranjard, who started coverage with an Outperform rating and a $21 price target.

The company's core business involves facilitating local payment methods for international businesses, a service that has seen surging demand as e-commerce expands in Latin America, Africa, and Asia.

Market Voices: A Split on Fintech's Path

Michael Chen, Portfolio Manager at Horizon Capital: "Truist's adjustment is a measured, rational take. The price target bump is modest, reflecting both the proven model and the very real headwinds from prior-year growth spikes. For long-term holders, DLocal's infrastructure in emerging markets is the real story, not a single quarter's volume comparison."

Sarah J. Miller, Fintech Analyst at Clearwater Research: "This is classic 'whisper number' management. By highlighting the tough comps now, they're trying to ensure any solid result is seen as a win. The more interesting signal is the commentary about 2026 guidance across the sector—it hints at a collective preparation for a growth deceleration that the market hasn't fully priced in."

David R. Kostka, Independent Investor & Commentator: "Another day, another minor price target tweak to generate headlines. Moving a target by a single dollar ahead of earnings is theater, not analysis. The entire fintech space is bracing for a guidance reset because the growth story is fraying. DLocal isn't immune, and calling a 6% target increase 'bullish' is laughable."

Anita Rodriguez, VP of Strategy at a Regional Payment Processor: "As a competitor, I respect DLocal's execution. The analyst focus on volume comparisons misses the point—their margins and ability to add new payment methods and geographies are what will drive the stock from here. The Truist note cautiously acknowledges this, but the real test is their take after the earnings call."

Disclosure: This analysis is based on publicly available research and market commentary. It is for informational purposes only and does not constitute investment advice.