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In his commentary, Mathivanan expressed continued optimism about MercadoLibre (NASDAQ:MELI)’s fundamental outlook for 2025. The revised fiscal year 2026 EBIT estimates, which are now 3% higher, played a role in the new 12-month price target of $2,900 for the company’s shares. Trading at a P/E ratio of 59.14 and showing a beta of 1.61, the stock exhibits higher volatility than the broader market. InvestingPro analysis indicates the stock is currently trading near its Fair Value, with 15+ additional ProTips available to subscribers. Trading at a P/E ratio of 59.14 and showing a beta of 1.61, the stock exhibits higher volatility than the broader market. InvestingPro analysis indicates the stock is currently trading near its Fair Value, with 15+ additional ProTips available to subscribers.
In his commentary, Mathivanan expressed continued optimism about MercadoLibre’s fundamental outlook for 2025. The revised fiscal year 2026 EBIT estimates, which are now 3% higher, played a role in the new 12-month price target of $2,900 for the company’s shares. Trading at a P/E ratio of 59.14 and showing a beta of 1.61, the stock exhibits higher volatility than the broader market. InvestingPro analysis indicates the stock is currently trading near its Fair Value, with 15+ additional ProTips available to subscribers.
The company’s Fintech sector also reported a significant quarter, with total payment volume (TPV) from its acquiring business growing by 32% year-over-year, or 59% excluding FX effects. This growth was attributed to the solid performance across various product categories.
Despite facing headwinds from increased investments and a growing credit card mix, MercadoLibre managed to expand its EBIT margin by 70 basis points year-over-year. Mathivanan highlighted the first quarter as a strong period for the company, noting healthy top-line trends and a commendable margin expansion.
In his commentary, Mathivanan expressed continued optimism about MercadoLibre’s fundamental outlook for 2025. The revised fiscal year 2026 EBIT estimates, which are now 3% higher, played a role in the new 12-month price target of $2,900 for the company’s shares.
In other recent news, MercadoLibre has reported impressive financial results, particularly in its fintech sector, with Total (EPA:TTEF) Payment Volume (TPV) reaching $58.3 billion, surpassing expectations. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) were notably strong at $935 million, significantly higher than the anticipated $769 million. BTIG analyst Marvin Fong has increased MercadoLibre’s stock price target to $2,750, citing the company’s robust quarterly performance and potential for continued growth, especially in Argentina. Meanwhile, Cantor Fitzgerald has adjusted its price target for the company to $2,400, maintaining an Overweight rating despite the revision, reflecting confidence in MercadoLibre’s growth potential.
Additionally, Benchmark initiated coverage with a Buy rating and a $2,500 price target, highlighting the company’s strong position in Latin America’s e-commerce and fintech sectors. MercadoLibre also announced a significant investment of $5.8 billion in Brazil, aimed at expanding its logistics and technology operations and creating approximately 14,000 jobs. This investment marks a 47.8% increase from the previous year, underscoring the company’s commitment to growth in its principal market. These developments illustrate MercadoLibre’s strategic focus on strengthening its market presence and capitalizing on growth opportunities in the region.
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