Analyst Joao Soares of Citi maintained a Buy rating on Mercadolibre (MELI – Research Report), retaining the price target of $2,450.00.
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Joao Soares has given his Buy rating due to a combination of factors that highlight Mercadolibre’s proactive measures and potential for resilience. Despite the challenges posed by the Brazilian National Telecommunications Agency’s (Anatel) request to block websites/apps, Mercadolibre has been actively collaborating with Anatel to prevent the sale of unauthorized mobile phones, demonstrating their commitment to compliance and adaptability.
Furthermore, while the potential court decision to block the site could impact Mercadolibre’s gross merchandise volume (GMV), the company’s proactive stance and strategic measures to align with regulatory expectations suggest a capacity to mitigate these risks. This forward-thinking approach, coupled with the company’s ability to navigate complex regulatory environments, underpins Joao Soares’s confidence in Mercadolibre’s long-term growth prospects, justifying the Buy rating.
According to TipRanks, Soares is ranked #813 out of 9519 analysts.