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Investing.com - Cantor Fitzgerald raised its price target on MercadoLibre (NASDAQ:MELI) to $2,900.00 from $2,700.00 on Wednesday, while maintaining an Overweight rating on the Latin American e-commerce giant. The stock, currently trading at $2,494.35 and near its 52-week high, has shown impressive momentum with a 46.69% gain year-to-date.
The research firm noted that MercadoLibre shares have underperformed the NASDAQ by 4 percentage points since the company’s second-quarter earnings report, attributing this to macroeconomic concerns and questions about margin trajectory. Despite these concerns, InvestingPro data shows the company maintains strong financial health with impressive gross profit margins of 51.54% and robust revenue growth of 35.81%.
Despite these short-term challenges, Cantor Fitzgerald identified MercadoLibre as one of its "top picks for 2026," citing expectations for sustained acceleration in top-line growth over the coming quarters.
The new price target is based on a fiscal year 2026 estimated EV/EBIT multiple of 30x applied to projected EBIT of $4.4 billion, compared to the previous target which used a 32x multiple.
Cantor Fitzgerald explained that it increased its multiple to account for "an incrementally more favorable operating environment" in Argentina, one of MercadoLibre’s key markets.
In other recent news, MercadoLibre reported its second-quarter 2025 earnings, showing a mixed financial performance. The company’s earnings per share (EPS) came in at $10.31, which was below the anticipated $12.21, representing a 15.56% negative surprise. However, MercadoLibre’s revenue surpassed expectations, reaching $6.79 billion compared to the forecasted $6.59 billion, a 3.03% positive surprise. Additionally, Benchmark has maintained its Buy rating for MercadoLibre, with a price target of $2,875. This decision was influenced by MercadoLibre’s recent strategy to lower the free shipping threshold in Brazil, which has caught the attention of investors. Meanwhile, Mexico’s anti-trust watchdog, Cofece, found that sellers on MercadoLibre face competition barriers in the country’s e-commerce market. The investigation highlighted that the platform does not provide sufficient information to sellers about how featured products are determined. Furthermore, it was noted that products from sellers who use the platform’s logistics services receive greater visibility.
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