MercadoLibre stock price target raised to $2,700 at JPMorgan

Investing.com - JPMorgan raised its price target on MercadoLibre (NASDAQ:MELI) to $2,700 from $2,600 on Thursday while maintaining a Neutral rating on the Latin American e-commerce giant. The company, currently valued at $119 billion, is trading near InvestingPro’s Fair Value estimate, with analyst targets ranging from $2,030 to $3,500.

The price target adjustment follows MercadoLibre’s second-quarter 2025 results, with JPMorgan slightly increasing its gross merchandise volume (GMV) estimates due to higher growth projections in Brazil and Mexico.

Despite the higher GMV outlook, JPMorgan reduced its profitability estimates for the company, citing new shipping policies in Brazil and an increasingly competitive market environment.

JPMorgan analyst Marcelo Santos noted that MercadoLibre is "entering a phase of higher competition following two years of relatively calm markets in Brazil," which could impact future margins.

While the firm expects MercadoLibre to maintain strong growth, it believes the company is "unlikely to deliver the margin expansion embedded in consensus estimates for the next few years," supporting its decision to maintain a Neutral stance on the stock.

In other recent news, MercadoLibre reported mixed second-quarter results, with significant growth in gross merchandise volume (GMV) and total payment volume (TPV). GMV reached $15.3 billion, surpassing analyst estimates of $15.0 billion, while TPV outperformed at $64.6 billion against expectations of $64.0 billion. Despite these strong metrics, the company faced challenges in profitability. Raymond (NSE:RYMD) James maintained its Strong Buy rating on MercadoLibre, setting a price target of $2,750.00, while Cantor Fitzgerald reiterated an Overweight rating with a $2,700.00 price target, highlighting revenue and EBIT surpassing their estimates by 9% and 5%, respectively. Benchmark also maintained a Buy rating with a price target of $2,875.00, acknowledging the company’s robust growth in commerce and fintech segments. Meanwhile, Citi lowered its price target to $2,900 from $3,000, citing expected margin pressure due to recent investments, including changes to shipping policies in Brazil. Additionally, MercadoLibre’s board approved a new compensation plan for independent directors and authorized a share repurchase program, reflecting strategic initiatives moving forward. These developments provide a comprehensive view of MercadoLibre’s current financial and strategic position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.