Mercadolibre, the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Andrew R. Ruben from Morgan Stanley maintained a Buy rating on the stock and has a $2,850.00 price target.
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Andrew R. Ruben has given his Buy rating due to a combination of factors including Mercadolibre’s strategic investments and operational momentum. The company is expanding its free shipping policies in Brazil, which, despite initial costs, is expected to boost the number of items sold and gross merchandise volume (GMV) growth. This strategic move is anticipated to enhance Mercadolibre’s market position and drive long-term growth.
Additionally, Mercadolibre’s operations in Argentina are showing strong performance, contributing significantly to the company’s profits. The growth in Argentina, along with advancements in their credit and advertising sectors, provides a solid foundation for margin support. These factors collectively suggest a positive outlook for Mercadolibre, justifying the Buy rating.
According to TipRanks, R. Ruben is a 4-star analyst with an average return of 21.8% and an 80.00% success rate.
In another report released on July 4, Citi also maintained a Buy rating on the stock with a $3,000.00 price target.