MercadoLibre stock maintains Buy rating at Benchmark amid recent pressure

Published 21/10/2025, 14:34
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Investing.com - Benchmark maintained its Buy rating on MercadoLibre (NASDAQ:MELI) with a price target of $2,875.00, according to a research note published Tuesday. Currently trading at $2,104.87, the stock has delivered a 19.09% return year-to-date, according to InvestingPro data.

The research firm attributed recent pressure on the Latin American e-commerce giant’s stock to year-end profit taking, as investors anticipate potential limitations on near-term margin expansion due to increased investments amid a more competitive landscape.

Benchmark noted that uncertainty in Argentina’s macroeconomic environment has sparked investor debate, with Shopee’s expressed interest in the country adding to market concerns.

Despite these mixed headlines, Benchmark stated it sees no fundamental changes to MercadoLibre’s business outlook and has raised its third-quarter 2025 revenue forecast while maintaining its EBIT estimate to account for increased investments in free shipping and marketing.

The firm concluded that following the recent pullback in share price, the risk/reward profile for MercadoLibre stock has become more favorable for investors.

In other recent news, MercadoLibre Inc. reported its second-quarter 2025 earnings, showing mixed results. The company posted earnings per share of $10.31, which fell short of the forecasted $12.21, marking a 15.56% negative surprise. However, the revenue surpassed expectations, reaching $6.79 billion compared to the forecast of $6.59 billion, a 3.03% positive surprise. In related developments, Benchmark maintained its Buy rating and $2,875 price target on MercadoLibre, noting the company’s strategic move to lower the free shipping threshold in Brazil. Cantor Fitzgerald also raised its price target for MercadoLibre to $2,900, maintaining an Overweight rating, and cited macroeconomic concerns affecting the stock’s performance. Meanwhile, Mexico’s anti-trust watchdog Cofece found that sellers on MercadoLibre and Amazon face competition barriers but did not impose fines. Additionally, Revolut Ltd received final approval from Mexico’s financial regulator to operate as a bank, increasing competition in the region. These recent developments highlight the dynamic environment in which MercadoLibre operates.

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