ADYEY - dLocal upgraded to Buy at New Street as emerging markets e-commerce play

New Street analyst Soomit Datta upgraded dLocal (NASDAQ:DLO) to Buy, calling the Brazil-based fintech focusing on payments "a structural play on e-commerce adoption across emerging markets." The analyst is particularly encouraged by dLocal's (DLO) guidance, issued with Q4 earnings, for more than 150% net revenue retention, saying it "provides comfort for FY 22 revenue." EBITDA is also staying stable, on an absolute basis, since the company's IPO, Datta said in a note to clients. "Net margins, meanwhile, at ~30% are best in class and rare in the context of such high growth." The analyst pointed to Adyen (OTCPK:ADYEY) (OTCPK:ADYYF) as the closest comparable stock to dLocal (DLO), but DLO's discount to Adyen "has widened and presents an attractive entry point," Datta said. His Buy rating on DLO aligns with the average Wall Street rating of Buy DLocal (DLO) is scheduled to release Q1 earnings after the close on May 17

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dLocal upgraded to Buy at New Street as emerging markets e-commerce play