On Friday, Cantor Fitzgerald analyst firm made a notable change to MercadoLibre ’s (NASDAQ:MELI) stock outlook, raising the price target significantly to $3,000 from the previous $2,150. Currently trading around $2,110, the stock is near its 52-week high of $2,161, with analyst targets ranging from $1,750 to $3,000. This adjustment follows MercadoLibre’s impressive fourth-quarter earnings, which surpassed analysts’ expectations in terms of revenue and EBIT (earnings before interest and taxes). InvestingPro analysis indicates the stock is currently in overbought territory, with 12 additional exclusive insights available to subscribers.
The e-commerce giant, now valued at over $106 billion, reported a substantial 56% growth in total Gross Merchandise Volume (GMV) when excluding foreign exchange impacts, and a 27% increase in units sold for the fourth quarter. The company’s impressive 43.56% revenue growth, reaching $20.78 billion in the last twelve months, reflects its strong market position. This performance came despite a slight deceleration due to more challenging comparisons with the previous year. Additionally, MercadoLibre achieved quarter-over-quarter margin expansion, benefiting from improvements in Net Interest Margin After Losses (NIMAL) and leveraging fixed costs, maintaining a healthy gross profit margin of 46.09%.
Cantor Fitzgerald’s analysis highlighted MercadoLibre’s strong fundamental outlook for 2025, suggesting a robust future for the company. The analyst firm also noted the healthy overall demand environment for both e-commerce and fintech services across multiple countries. MercadoLibre’s incremental product offerings have seen solid adoption trends, which bodes well for the company’s continued growth.
While margin trends may experience volatility in the near term due to seasonal variations and product mix factors, Cantor Fitzgerald anticipates that MercadoLibre has considerable potential for margin expansion over the medium term. This optimistic outlook is supported by the company’s "GREAT" financial health score of 3.36 on InvestingPro, though investors should note the relatively high P/E ratio of 74.15. For deeper insights into MercadoLibre’s valuation and growth prospects, access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, MercadoLibre reported impressive fourth-quarter earnings, with earnings per share (EPS) reaching $12.61, significantly surpassing the consensus estimate of $7.90. The company’s e-commerce segment in Brazil saw a notable Gross Merchandise Volume (GMV) increase of 32%. Additionally, MercadoLibre’s fintech operations reported robust credit performance, with record-low first payment defaults in Brazil. BTIG analysts responded to these results by raising their price target for MercadoLibre stock to $2,500, maintaining a Buy rating due to the company’s strong financial performance.
On the other hand, JPMorgan revised its price target for MercadoLibre to $1,950, citing challenges such as lower foreign exchange expectations in Brazil and higher capital costs. Despite maintaining a Neutral stance, JPMorgan adjusted its earnings estimates for 2025 and 2026 downward. Citi analysts, however, reiterated a Buy rating with a price target of $2,250, highlighting MercadoLibre’s expanding credit portfolio and improved credit quality as positive indicators.
These developments reflect varying perspectives from analysts on MercadoLibre’s financial outlook. Investors can review the company’s detailed financial results for the fourth quarter and full year on its investor relations website.
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