MercadoLibre stock price target maintained at $2,875 by Benchmark

Investing.com - Benchmark maintained its Buy rating and $2,875.00 price target on MercadoLibre (NASDAQ:MELI) on Wednesday, according to a research note from analyst Fawne Jiang. Currently trading at $2,380, MELI has shown impressive momentum with a 39.5% year-to-date return. InvestingPro data reveals the company maintains a "GREAT" overall financial health score of 3.28 out of 5.

The firm’s analysis focused on MercadoLibre’s recent decision to lower the free shipping threshold in Brazil, a move that has generated significant investor interest regarding both financial impacts and strategic implications. This strategic move comes as the company demonstrates strong revenue growth of 35.8% over the last twelve months, with total revenue reaching $24.1 billion.

Benchmark acknowledged that while this strategy is expected to increase near-term costs and introduce greater market variability, the firm agrees with MercadoLibre’s assessment that the Brazilian market is prepared for deeper online penetration.

The research note indicated that Benchmark’s recent meeting with MercadoLibre’s management reinforced their belief that collective actions by market leaders would likely accelerate online adoption in the region.

Benchmark concluded that the expansion of the overall market could ultimately benefit leading players like MercadoLibre , despite the short-term cost implications of the free shipping threshold reduction.

In other recent news, MercadoLibre Inc. reported its second-quarter 2025 earnings, showcasing a mixed financial performance. The company’s earnings per share (EPS) were $10.31, which fell short of the anticipated $12.21, resulting in a 15.56% negative surprise. However, revenue figures were more favorable, as the company reported $6.79 billion, surpassing the forecast of $6.59 billion, marking a 3.03% positive surprise. Despite the EPS shortfall, the revenue growth highlights a robust performance in other areas of the business. These recent developments reflect the company’s ongoing efforts to strengthen its financial position. Investors may find the revenue beat encouraging, even as the EPS miss suggests areas for potential improvement. No analyst upgrades or downgrades were mentioned in the latest updates.

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