Mercadolibre’s Strategic Growth and Expansion: A Buy Rating by Andrew R. Ruben

Analyst Andrew R. Ruben of Morgan Stanley maintained a Buy rating on Mercadolibre (MELI – Research Report), retaining the price target of $2,850.00.

Andrew R. Ruben has given his Buy rating due to a combination of factors that highlight Mercadolibre’s strategic initiatives and growth potential. One of the primary reasons is the company’s decision to expand its free shipping policy in Brazil, which is expected to capture more eCommerce purchase occasions. This move is supported by the efficiency of Mercadolibre’s logistics network, which aims to reduce shipping costs and improve delivery speeds, thereby enhancing customer satisfaction and increasing order frequency.
Additionally, Mercadolibre’s digital banking operations are showing stable credit performance, with significant growth opportunities in the long term. The company’s strategic investments in its logistics and fulfillment networks, along with its credit card expansion plans, are seen as critical drivers for future growth. Furthermore, a potential economic recovery in Argentina could provide additional support for the expansion of Mercadolibre’s credit operations in the region, further bolstering its financial performance.

In another report released on June 10, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $2,700.00 price target.

MELI’s price has also changed moderately for the past six months – from $1809.120 to $2389.480, which is a 32.08% increase.