Joao Soares, an analyst from Citi, maintained the Buy rating on Mercadolibre. The associated price target remains the same with $2,700.00.
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Joao Soares has given his Buy rating due to a combination of factors including Mercadolibre’s strong growth in user engagement and market leadership across key Latin American regions. In Brazil, the company has experienced a notable increase in monthly active users (MAU), with a 20% year-over-year growth, surpassing competitors like Shopee. This growth is attributed to strategic investments aimed at enhancing user retention and engagement, such as lowering the free shipping threshold and launching monthly campaigns.
Additionally, Mercadolibre’s fintech arm, Pago, has shown impressive growth, particularly in Brazil and Mexico. Pago’s MAU in Brazil grew by 32% year-over-year, making it the second-largest fintech player in terms of user numbers. In Mexico, Pago maintained its leadership with a 30% increase in MAU, closing the gap with its competitor NU. These factors, combined with consistent growth in Argentina, underpin Joao Soares’s positive outlook and Buy rating for Mercadolibre’s stock.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $2,312.00 price target.