J.P. Morgan analyst Marcelo Santos has maintained their bullish stance on MELI stock, giving a Buy rating on February 1.
Marcelo Santos has given a Buy rating to MercadoLibre’s stock, factoring in multiple elements of the company’s operational and competitive landscape. Santos acknowledges the substantial market presence that MercadoLibre holds, particularly in light of the recent directives issued by the Mexican Competition Commission (COFECE), which impact both MercadoLibre and Amazon. The mandated changes are expected to enhance market transparency and competition, potentially benefiting MercadoLibre by creating a more level playing field in terms of logistics and promotional algorithms.
Specifically, the COFECE’s resolution aims to disentangle streaming services from marketplace loyalty programs, enhance seller knowledge of Buy Box promotion criteria, and open API access to third-party logistics providers while ensuring that in-house fulfillment solutions do not unduly influence product promotion. Santos perceives these measures as opportunities for MercadoLibre to differentiate itself and improve its service offerings, which in turn could drive revenue growth and solidify its competitive position. This outlook supports the Buy recommendation, reflecting confidence in MercadoLibre’s capacity to adapt to regulatory changes and maintain its strong market share.
In another report released on February 1, Barclays also maintained a Buy rating on the stock with a $1,900.00 price target.
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Mercadolibre (MELI) Company Description:
Founded in 1999, Argentina-based MercadoLibre, Inc. provides the largest online commerce and payments ecosystem in Latin America. The company provides users a mechanism for buying, selling and paying as well as collecting, generating leads, and comparing lists through e-commerce transactions. It has operations in 18 countries including, Argentina, Brazil, Mexico, Colombia, Chile, Venezuela and Peru.
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