Analyst Fawne Jiang from Benchmark Co. reiterated a Buy rating on Mercadolibre and keeping the price target at $2,875.00.
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Fawne Jiang has given his Buy rating due to a combination of factors that highlight Mercadolibre’s strong growth potential despite some near-term challenges. The company demonstrated solid growth in gross merchandise volume (GMV) and total payment volume (TPV) across its commerce and fintech segments, particularly in key markets like Argentina, Brazil, and Mexico. This growth is expected to continue, supported by deeper market penetration and strategic initiatives such as the Argentina credit card launch, which is anticipated to enhance recent gains in the fintech sector.
Despite facing margin pressures due to increased marketing expenditures and changes in Brazil’s free shipping policy, Mercadolibre is poised to benefit from long-term growth drivers. These include rising ad monetization through partnerships like the one with Google, improved shipping efficiencies, and operating leverage. The company’s ability to maintain strong user growth and a disciplined credit approach further supports its robust outlook. Consequently, Jiang has adjusted revenue forecasts upward for the coming years, reinforcing the Buy rating with a price target of $2875.
In another report released on August 1, Daiwa also initiated coverage with a Buy rating on the stock with a $3,000.00 price target.