In a report released yesterday, Joao Soares from Citi maintained a Buy rating on Mercadolibre (MELI – Research Report), with a price target of $2,450.00.
Joao Soares has given his Buy rating due to a combination of factors that include adjustments in the financial model for Mercadolibre, reflecting changes in currency assumptions and country risk. Despite a reduction in earnings projections for 2025 and 2026, the decrease in Argentina’s country risk has led to a lower cost of equity, which offsets the negative impacts of currency depreciation.
Moreover, while there are reductions in gross merchandise volume and total payment volume estimates, as well as a decrease in group net sales and operating margins, these are counterbalanced by the strategic adjustments in the financial outlook. The price target for Mercadolibre’s stock has been slightly increased, indicating confidence in the company’s long-term potential despite short-term challenges.
In another report released on April 9, Morgan Stanley also reiterated a Buy rating on the stock with a $2,560.00 price target.