Mercadolibre, the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Joao Soares from Citi maintained a Buy rating on the stock and has a $2,850.00 price target.
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Joao Soares has given his Buy rating due to a combination of factors that highlight Mercadolibre’s strategic positioning and growth potential in the financial services sector. The recent launch of a credit card in Argentina, supported by the Mastercard network, is a significant step that taps into the underpenetrated credit market in the country. With a large portion of the Argentine population lacking access to credit cards, Mercadolibre’s initiative presents a substantial opportunity for expansion and increased financial inclusion.
Moreover, Mercadolibre’s digital payment platform, Pago, is already a dominant player in Argentina, boasting over 20 million monthly active users. The potential acquisition of a full banking license would further strengthen its position by allowing access to more stable and cost-effective funding sources. This strategic move could enhance Mercadolibre’s ability to offer comprehensive financial services, thereby driving incremental revenue growth and increasing gross merchandise volume. These factors collectively underpin Joao Soares’s optimistic outlook and Buy rating for the stock.
In another report released on August 20, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $2,601.00 price target.