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Investing.com - BTIG has reiterated its Buy rating and $2,750.00 price target on MercadoLibre (NASDAQ:MELI) following the company’s latest quarterly results, which showed robust growth in key metrics despite some challenges. According to InvestingPro data, analysts have set targets ranging from $2,170 to $3,500, with MELI currently trading at a P/E ratio of 56.63. The company’s Fair Value assessment suggests the stock is currently fairly valued.
The e-commerce giant delivered strong gross merchandise volume (GMV) and revenue performance that met BTIG’s adjusted EBITDA estimate, though it fell short of the consensus expectation for earnings before interest, taxes, depreciation, and amortization. MercadoLibre has maintained impressive gross profit margins of 51.54% and generated revenue of $24.1 billion with 35.81% year-over-year growth.
BTIG noted the quarter was expected to be "messy" due to several factors, including a reduced free shipping threshold in Brazil, volatility in Argentina, and increased marketing expenditures, which made financial modeling more difficult. Despite these challenges, InvestingPro data shows MercadoLibre maintains a "GREAT" overall Financial Health Score of 3.38, with particularly strong performance in growth and profitability metrics. The company operates with a moderate level of debt and its cash flows sufficiently cover interest payments.
The firm highlighted several positive indicators, including strong buyer and fintech monthly active user growth, as well as increased items sold per user, both in Brazil and across Latin America overall, suggesting the company’s strategy is working effectively.
BTIG also pointed to the recent electoral victory of Javier Milei in Argentina and the resulting rally in the Argentine peso as factors that have "incrementally de-risked" MercadoLibre’s outlook, allowing investors to focus more on the company’s strong fundamentals.
In other recent news, MercadoLibre Inc. announced its third-quarter 2025 earnings, revealing a mixed financial performance. The company reported an earnings per share (EPS) of $8.32, which was below the anticipated $10.72, reflecting a 22.39% miss. However, MercadoLibre exceeded revenue expectations, with a reported figure of $7.41 billion compared to the forecasted $7.19 billion. Despite the earnings miss, the company demonstrated strong revenue growth. These developments have drawn attention from investors and analysts alike. The earnings report highlights the complex financial landscape that MercadoLibre is navigating. Analysts and investors are closely monitoring these figures to understand the company’s future trajectory.
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