Analyst Marcelo Santos of J.P. Morgan maintained a Hold rating on Mercadolibre (MELI – Research Report), boosting the price target to $2,300.00.
Marcelo Santos has given his Hold rating due to a combination of factors surrounding Mercadolibre’s current financial standing and market valuation. Despite the company’s impressive fourth-quarter results, which included stronger profit margins and reduced SG&A expenses, Santos believes that these positive developments are already reflected in the stock’s current price. The stock’s valuation, at 49 times the projected earnings for 2025, is considered high, indicating that the market has already priced in the company’s growth potential.
Furthermore, while Mercadolibre is well-positioned in the Latin American e-commerce and fintech sectors, with promising long-term prospects, the company is still in an investment phase. This phase involves increased expenses related to logistics and the expansion of its credit card business, which may prevent it from exceeding consensus estimates. Therefore, while the company’s future outlook is positive, the current valuation and investment phase justify a Hold rating, as the stock’s potential upside may be limited in the near term.