Optimistic Buy Rating for Mercadolibre Amid Strategic Investments and Managed Financial Risks

In a report released yesterday, Andrew R. Ruben from Morgan Stanley maintained a Buy rating on Mercadolibre (MELI – Research Report), with a price target of $2,450.00.

Andrew R. Ruben’s rating is based on a comprehensive analysis of Mercadolibre’s recent financial performance and strategic positioning. Despite higher operating expenses impacting the third-quarter EBIT, these costs were partly due to non-recurring expenses and not a sign of accelerated hiring. Ruben highlights that the company’s logistics and first-party economics are favorable, which bodes well for future performance.
Furthermore, Ruben acknowledges the controlled nature of credit card contribution losses, suggesting prudent management of financial risks. While the short-term outlook includes some challenges, Ruben expresses confidence in Mercadolibre’s investments, which are expected to drive profitable growth in the future. As a result, Ruben reiterates a Buy rating, underscoring optimism about the company’s strategic direction and potential for long-term success.

In another report released on November 7, Barclays also assigned a Buy rating to the stock with a $2,500.00 price target.

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Mercadolibre (MELI) Company Description:

Founded in 1999, Argentina-based MercadoLibre, Inc. provides the largest online commerce and payments ecosystem in Latin America. The company provides users a mechanism for buying, selling and paying as well as collecting, generating leads, and comparing lists through e-commerce transactions. It has operations in 18 countries including, Argentina, Brazil, Mexico, Colombia, Chile, Venezuela and Peru.