Jefferies sees ‘plenty to be positive about’ despite MercadoLibre headline miss

Jefferies notes MercadoLibre (MELI) reported a headline earnings “miss” with net income of $523M 13.3% below consensus, driven by a combination of gross margin pressures, heavy marketing spending, and foreign exchange losses in Argentina. However, the firm sees “plenty to be positive about,” including a revenue beat that was “broad-based,” with key drivers including Mexico, first-party sales, ads, loan growth and credit revenue. Volume acceleration in June is “cause for encouragement in Q3,” adds the analyst, who has a Hold rating and $2,800 price target on the shares.