Mercadolibre’s Strong Financial Performance and Growth Potential Drive Buy Rating

Analyst Marvin Fong from BTIG maintained a Buy rating on Mercadolibre (MELI – Research Report) and increased the price target to $2,750.00 from $2,500.00.

Marvin Fong has given his Buy rating due to a combination of factors that highlight Mercadolibre’s strong financial performance and growth potential. The company reported impressive results, particularly in its fintech segment, with total payment volume significantly exceeding expectations. Argentina emerged as a key growth driver, showcasing substantial macroeconomic improvements and remarkable revenue growth in both e-commerce and fintech sectors.
Mercadolibre’s strategic focus on improving credit quality in Brazil, along with its robust performance in Argentina, contributed to its strong EBITDA margins. Despite some challenges in Mexico, the company’s overall financial health remains solid, with higher-than-expected EBITDA and promising future estimates for GMV and TPV. These factors, coupled with the potential for significant EPS growth, support the increased price target and Buy rating from Marvin Fong.

In another report released today, Morgan Stanley also reiterated a Buy rating on the stock with a $2,560.00 price target.

MELI’s price has also changed moderately for the past six months – from $1774.050 to $2262.090, which is a 27.51% increase.