In a report released today, Andrew R. Ruben from Morgan Stanley reiterated a Buy rating on Mercadolibre (MELI – Research Report), with a price target of $2,560.00.
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Andrew R. Ruben has given his Buy rating due to a combination of factors including Mercadolibre’s impressive financial performance and strategic growth initiatives. The company reported a 37% year-over-year increase in revenue, which was 5% above Morgan Stanley’s estimates, and a 45% increase in EBIT, surpassing expectations by 17%. This strong financial performance was driven by a rebound in Argentina that offset reinvestment impacts in Brazil and Mexico.
Furthermore, Mercadolibre’s gross merchandise value (GMV) grew by 40% on a currency-neutral basis, with Brazil showing a notable 30% growth. The company’s logistics improvements, such as reaching 60% fulfillment penetration in Brazil, are expected to support further volume gains. Despite challenges in Mexico and a competitive landscape in Latin America, Ruben believes that Mercadolibre’s operating model and reinvestment strategy are leading to sustainable and profitable market share gains.
According to TipRanks, R. Ruben is ranked #1187 out of 9472 analysts.
In another report released today, Barclays also maintained a Buy rating on the stock with a $3,100.00 price target.