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Investing.com - Cantor Fitzgerald reduced its price target on MercadoLibre (NASDAQ:MELI) to $2,750 from $2,900 while maintaining an Overweight rating on the stock. The current share price stands at $2,406.17, with analyst targets ranging from $2,170 to $3,500, according to InvestingPro data.
The Latin American e-commerce giant reported third-quarter results with gross merchandise volume (GMV) and revenue exceeding Street estimates by 2% and 3% respectively, though operating income fell 5% below expectations. The company has maintained impressive 35.8% year-over-year revenue growth, reaching $24.1 billion over the last twelve months.
MercadoLibre ’s total GMV growth outpaced Street forecasts by 3 percentage points despite increased macroeconomic volatility in Argentina. In Brazil, GMV accelerated 5 percentage points to 34% on an FX-neutral basis, driven by benefits from changes to the company’s free shipping program.
The company’s fintech division showed strength with healthy credit card issuances and strong processing volumes. However, third-quarter operating margin faced pressure from increased marketing investments, credit card provisions, and logistics expenses.
Cantor Fitzgerald noted that while near-term investments are affecting margins, MercadoLibre "continues to see strong momentum in several businesses" and has "plenty of runway to improve profitability over the medium term." The company is currently trading at a P/E ratio of 58.2, which InvestingPro identifies as high relative to near-term earnings growth. For deeper insights on MercadoLibre and 1,400+ other US stocks, check out the comprehensive Pro Research Reports available exclusively to subscribers.
In other recent news, MercadoLibre reported its third-quarter 2025 earnings, revealing a mixed performance. The company posted an earnings per share (EPS) of $8.32, which fell short of the anticipated $10.72, missing the forecast by 22.39%. However, revenue for the quarter surged to $7.41 billion, surpassing the expected $7.19 billion. In light of these results, BTIG has maintained its Buy rating for MercadoLibre, with a price target set at $2,750.00. The firm highlighted the company’s strong gross merchandise volume (GMV) and revenue performance, which met its adjusted EBITDA estimate. Despite some challenges, MercadoLibre’s robust growth in key metrics remains noteworthy. These developments underscore the company’s resilience in maintaining strong financial performance amidst varying expectations.
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