UBS raises MercadoLibre stock price target to $3,000 from $2,500

On Monday, UBS analysts raised the price target for MercadoLibre (NASDAQ:MELI) stock to $3,000 from $2,500, while maintaining a Buy rating. The adjustment follows an update to earnings estimates after the company’s first-quarter 2025 results, which showed strong performance in both the e-commerce and fintech sectors, particularly in Argentina. According to InvestingPro data, the company’s revenue grew an impressive 37.7% in the last twelve months, with 4 analysts recently revising their earnings estimates upward.

The analysts highlighted that MercadoLibre continues to benefit from favorable macroeconomic conditions in Argentina, which are expected to help mitigate some margin pressures from ongoing investments. The company’s fintech arm, Mercado Pago, recently applied for a banking license in Argentina, a move that could bolster its position in the region’s financial technology market. InvestingPro data reveals the company maintains strong gross profit margins of 52.2% and holds more cash than debt on its balance sheet, supporting its expansion initiatives.

UBS’s revised 12-month forward price target suggests a potential upside of approximately 20% for MercadoLibre. The stock is currently trading at a price-to-earnings ratio of 51 times estimated earnings for 2025, and 38 times for 2026, compared to selected peers trading at 37 times and 30 times, respectively.

MercadoLibre’s strategic initiatives and market conditions in Argentina are seen as key drivers for its anticipated growth. The company’s ongoing investments in its platforms are expected to enhance its market presence despite potential margin pressures.

In other recent news, MercadoLibre has reported strong financial performance, with significant gains in revenue and profitability across its segments. Analysts from Cantor Fitzgerald, Benchmark, and BTIG have raised their price targets for the company, citing impressive quarterly results. Cantor Fitzgerald noted that MercadoLibre’s revenues and EBIT figures exceeded Wall Street expectations by 8% and 20%, respectively. Additionally, MercadoLibre’s Gross Merchandise Volume (GMV) and Total (EPA:TTEF) Payment Volume (TPV) showed robust growth, particularly in Argentina and Brazil.

BTIG highlighted the company’s fintech sector, where Mercado Crédito saw substantial growth, contributing to a revised price target of $2,750. This was supported by a 52% year-over-year increase in items sold in Argentina and a 119% growth in fintech revenue. Meanwhile, Benchmark raised its price target to $2,875, emphasizing the strong performance in Argentina and the expansion of the credit portfolio.

JPMorgan also adjusted its price target to $2,600, maintaining a Neutral rating, while acknowledging MercadoLibre’s strong quarter and strategic moves in response to competition. In leadership news, MercadoLibre announced a transition with Ariel Szarfsztejn set to become CEO in 2026. These developments reflect a period of strategic growth and leadership changes for MercadoLibre.

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