Lisa Cook sues Trump over firing attempt, emergency hearing set
Investing.com - Cantor Fitzgerald has reiterated its Overweight rating and $2,700.00 price target on MercadoLibre (NASDAQ:MELI), currently trading at $2,443.70, following the company’s second-quarter results that exceeded the firm’s expectations. According to InvestingPro, the company maintains a "GREAT" financial health score of 3.34 out of 5, with analysts’ targets ranging from $2,030 to $3,500.
MercadoLibre reported second-quarter revenues and EBIT that surpassed Cantor Fitzgerald’s estimates by 9% and 5% respectively. The company, which has achieved impressive revenue growth of 37.68% over the last twelve months, saw total GMV grow 37% year-over-year excluding foreign exchange effects and accelerated by 9 percentage points on a two-year basis, driven by broad geographical strength and shipping program changes implemented in June. InvestingPro subscribers can access 12 additional key insights about MELI’s growth trajectory and market position.
The company noted that both units sold and GMV accelerated in Brazilian real following the reduction of its free shipping threshold. In the fintech segment, acquiring TPV growth exceeded 50% year-over-year excluding foreign exchange effects, while credit portfolio growth accelerated to 91% year-over-year.
EBIT margin of 12.2% declined 210 basis points year-over-year due to margin compression from card issuances and increased marketing expenditure on awareness campaigns. Despite this near-term pressure on margins from logistics and marketing investments, Cantor Fitzgerald expects MercadoLibre to achieve healthy leverage across several areas of the P&L in the medium term.
The firm has raised its fiscal year 2026 GMV and TPV estimates by 4% and 5% respectively, but revised its EBIT forecast lower by 6%. Cantor Fitzgerald maintains its top-pick designation and Overweight rating on MercadoLibre stock, recommending investors buy on weakness.
In other recent news, MercadoLibre reported mixed second-quarter results, showcasing robust growth in gross merchandise volume, total payment volume, and revenue in its commerce and fintech segments, though profitability metrics did not meet expectations. S&P Global Ratings upgraded MercadoLibre to investment grade, highlighting the company’s solid operating and financial performance, with notable growth in Brazil, Mexico, and Chile. Meanwhile, Citi adjusted its price target for MercadoLibre, reducing it from $3,000 to $2,900, while maintaining a Buy rating due to anticipated margin pressures from strategic investments in June. Benchmark also maintained a Buy rating on MercadoLibre with a price target of $2,875, despite the mixed earnings report. The company’s board of directors approved a new compensation plan for independent directors and authorized a share repurchase program, which was disclosed in a recent SEC filing. Additionally, MercadoLibre’s shareholders approved all proposals at the annual meeting, including the election of several directors to serve until future meetings. These developments are part of the company’s ongoing efforts to strengthen its market position and financial health.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.