Throughout the last three months, 15 analysts have evaluated MercadoLibre (NASDAQ:MELI), offering a diverse set of opinions from bullish to bearish.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 5 | 8 | 2 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 1 | 3 | 1 | 0 | 0 |
| 2M Ago | 2 | 2 | 1 | 0 | 0 |
| 3M Ago | 1 | 3 | 0 | 0 | 0 |
Analysts have recently evaluated MercadoLibre and provided 12-month price targets. The average target is $2422.67, accompanied by a high estimate of $2800.00 and a low estimate of $2150.00. This upward trend is evident, with the current average reflecting a 2.67% increase from the previous average price target of $2359.58.
Interpreting Analyst Ratings: A Closer Look
A comprehensive examination of how financial experts perceive MercadoLibre is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Tobias Stingelin | Citigroup | Lowers | Buy | $2450.00 | $2480.00 |
| Marcelo Santos | JP Morgan | Lowers | Neutral | $2150.00 | $2400.00 |
| Trevor Young | Barclays | Lowers | Overweight | $2200.00 | $2500.00 |
| Andrew Ruben | Morgan Stanley | Lowers | Overweight | $2450.00 | $2500.00 |
| Marvin Fong | BTIG | Lowers | Buy | $2200.00 | $2250.00 |
| Deepak Mathivanan | Cantor Fitzgerald | Lowers | Overweight | $2300.00 | $2530.00 |
| Tobias Stingelin | Citigroup | Raises | Buy | $2480.00 | $2200.00 |
| Gonzalo Lopez | Redburn Atlantic | Announces | Buy | $2800.00 | - |
| Trevor Young | Barclays | Raises | Overweight | $2500.00 | $2100.00 |
| Marcelo Santos | JP Morgan | Maintains | Neutral | $2400.00 | $2400.00 |
| Josh Beck | Raymond James | Announces | Outperform | $2350.00 | - |
| Deepak Mathivanan | Cantor Fitzgerald | Maintains | Overweight | $2530.00 | $2530.00 |
| Andrew Ruben | Morgan Stanley | Raises | Overweight | $2500.00 | $2175.00 |
| Robert Ford | B of A Securities | Raises | Buy | $2500.00 | $2250.00 |
| Deepak Mathivanan | Cantor Fitzgerald | Announces | Overweight | $2530.00 | - |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to MercadoLibre. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of MercadoLibre compared to the broader market.
- Price Targets: Delving into movements, analysts provide estimates for the future value of MercadoLibre's stock. This analysis reveals shifts in analysts' expectations over time.
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of MercadoLibre's market standing. Stay informed and make data-driven decisions with our Ratings Table.
Stay up to date on MercadoLibre analyst ratings.
About MercadoLibre
MercadoLibre runs the largest e-commerce marketplace in Latin America, with more than 218 million active users and 1 million active sellers across 18 countries stitching into its commerce network or fintech solutions as of the end of 2023. The company operates a host of complementary businesses to its core online shop, with shipping solutions (Mercado Envios), a payment and financing operation (Mercado Pago and Mercado Credito), advertisements (Mercado Clics), classifieds, and a turnkey e-commerce solution (Mercado Shops) rounding out its arsenal. MercadoLibre generates revenue from final value fees, advertising royalties, payment processing, insertion fees, subscription fees, and interest income from consumer and small-business lending.
Financial Insights: MercadoLibre
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
Positive Revenue Trend: Examining MercadoLibre's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 35.27% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 7.47%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): MercadoLibre's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 10.37%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.86%, the company showcases effective utilization of assets.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.58.
The Basics of Analyst Ratings
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
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