Morgan Stanley analyst Andrew R. Ruben has maintained their bullish stance on MELI stock, giving a Buy rating on March 4.
Andrew R. Ruben has given his Buy rating due to a combination of factors that highlight Mercadolibre’s strategic positioning and growth potential in the Latin American market. The company’s focus on enhancing its logistics capabilities and expanding its Commerce and Fintech platforms positions it well to gain market share despite competitive pressures. Ruben’s analysis indicates that these investments, although potentially leading to short-term margin pressures, are expected to drive profitable growth, supported by an anticipated expansion in EBIT margins.
Furthermore, Mercadolibre’s management has emphasized a consistent set of investment priorities for the upcoming year, including logistics, developer hiring, and fintech services. The company is capitalizing on the low eCommerce penetration in the region and the shift from cash to digital financial services, which presents significant growth opportunities. The continuous improvement culture and strategic investments, such as logistics infrastructure and consumer payment tools, are expected to strengthen Mercadolibre’s competitive edge and attract new users to its platform.
According to TipRanks, R. Ruben is a 4-star analyst with an average return of 18.8% and a 73.91% success rate.
In another report released on March 4, Jefferies also maintained a Buy rating on the stock with a $2,450.00 price target.
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