MercadoLibre (NASDAQ:MELI) has been analyzed by 10 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 3 | 6 | 1 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 1 | 2 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 2 | 3 | 1 | 0 | 0 |
Insights from analysts' 12-month price targets are revealed, presenting an average target of $2687.0, a high estimate of $3100.00, and a low estimate of $2300.00. This upward trend is evident, with the current average reflecting a 11.44% increase from the previous average price target of $2411.11.
Understanding Analyst Ratings: A Comprehensive Breakdown
An in-depth analysis of recent analyst actions unveils how financial experts perceive MercadoLibre. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Trevor Young | Barclays | Raises | Overweight | $3100.00 | $2500.00 |
| Deepak Mathivanan | Cantor Fitzgerald | Lowers | Overweight | $2400.00 | $3000.00 |
| Fawne Jiang | Benchmark | Announces | Buy | $2500.00 | - |
| Andrew Ruben | Morgan Stanley | Lowers | Overweight | $2560.00 | $2650.00 |
| Irma Sgarz | Goldman Sachs | Raises | Buy | $2750.00 | $2400.00 |
| Marcelo Santos | JP Morgan | Raises | Neutral | $2300.00 | $1950.00 |
| Deepak Mathivanan | Cantor Fitzgerald | Raises | Overweight | $3000.00 | $2150.00 |
| James Friedman | Susquehanna | Raises | Positive | $2760.00 | $2350.00 |
| Robert Ford | B of A Securities | Raises | Buy | $3000.00 | $2500.00 |
| Trevor Young | Barclays | Raises | Overweight | $2500.00 | $2200.00 |
Key Insights:
- Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to MercadoLibre. This offers insight into analysts' perspectives on the current state of the company.
- Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of MercadoLibre compared to the broader market.
- Price Targets: Analysts predict movements in price targets, offering estimates for MercadoLibre's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.
To gain a panoramic view of MercadoLibre's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
Stay up to date on MercadoLibre analyst ratings.
Get to Know MercadoLibre Better
MercadoLibre runs the largest e-commerce marketplace in Latin America, with more than 218 million active users and 1 million active sellers across 18 countries stitching into its commerce network or fintech solutions when last reported. The company operates a host of complementary businesses to its core online shop, with shipping solutions (Mercado Envios), a payment and financing operation (Mercado Pago and Mercado Credito), advertisements (Mercado Clics), classifieds, and a turnkey e-commerce solution (Mercado Shops) rounding out its arsenal. MercadoLibre generates revenue from final value fees, advertising royalties, payment processing, insertion fees, subscription fees, and interest income from consumer and small-business lending.
MercadoLibre: Financial Performance Dissected
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
Revenue Growth: Over the 3M period, MercadoLibre showcased positive performance, achieving a revenue growth rate of 37.42% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.
Net Margin: MercadoLibre's net margin excels beyond industry benchmarks, reaching 10.55%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): MercadoLibre's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 15.3% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): MercadoLibre's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.67%, the company showcases efficient use of assets and strong financial health.
Debt Management: With a high debt-to-equity ratio of 1.57, MercadoLibre faces challenges in effectively managing its debt levels, indicating potential financial strain.
How Are Analyst Ratings Determined?
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.