Susquehanna analyst James Friedman has reiterated their bullish stance on MELI stock, giving a Buy rating today.
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James Friedman has given his Buy rating due to a combination of factors including the improvement in Mercadolibre’s credit quality and the strategic move to apply for a banking license in Argentina. Recent data shows a decrease in early-stage delinquencies and a steady improvement in the overall credit health of MELI’s borrowers, which suggests a positive outlook for the company’s financial services.
Furthermore, the application for a banking license in Argentina is a significant step for Mercado Pago, as it could enhance its competitive edge by offering more investment products and better rates, leveraging deposits as a funding source. These developments indicate a strong potential for growth and stability, reinforcing the Buy rating for MELI.
According to TipRanks, Friedman is a 4-star analyst with an average return of 3.7% and a 55.91% success rate. Friedman covers the Technology sector, focusing on stocks such as Globant SA, Stoneco, and Paysafe.
In another report released today, Bank of America Securities also maintained a Buy rating on the stock with a $3,000.00 price target.