Analyst Robert Ford of Bank of America Securities maintained a Buy rating on Mercadolibre (MELI – Research Report), retaining the price target of $3,000.00.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
Robert Ford’s rating is based on Mercadolibre’s strategic advancements in its advertising and fulfillment capabilities. The integration with Google’s ad exchange allows Mercadolibre to offer advertisers access to a vast network of off-platform sites, significantly enhancing the reach and effectiveness of its advertising services. This development is expected to drive higher ad penetration rates, which could substantially boost the company’s earnings.
Additionally, Mercadolibre’s expansion in fulfillment center capacity and inventory centralization, particularly in the fast-moving consumer goods sector, is poised to double its addressable market. These efforts not only improve user engagement but also enhance the company’s competitive positioning in the Latin American market. The combination of these factors underpins Ford’s optimistic outlook and Buy rating for Mercadolibre’s stock.
In another report released yesterday, Citi also maintained a Buy rating on the stock with a $3,000.00 price target.