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Brean Murray Carret & Co. Starts MercadoLibre (MELI) at Buy

March 1, 2011 6:55 AM EST Send to a Friend
Get Alerts MELI Hot Sheet
Price: $114.95 +0.24%

Rating Summary:
    6 Buy, 6 Hold, 4 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 3 | Down: 4 | New: 7
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Brean Murray Carret & Co. initiates coverage on MercadoLibre (NASDAQ: MELI) with a Buy and $76 price target.

The firm states, "We are very positive on the prospects of Latin American eCommerce, especially in light of strong broadband growth rate prospects in Brazil. We further believe the company has substantial opportunity to improve its take rate. Admittedly, competitive pressure continues to be exerted on the Latin American e-commerce space, but strong adoption of payments and substantial investments in vertical expansion, technology platform, search, and shipment integration provide opportunity for growth acceleration in late 2011 into 2012. Following the recent pullback, MELI is trading at ~30x our FY12 EPS estimates, which is pricey. However, given the compelling long-term story and numerous catalysts, we believe there is room for our estimates and for recovery in the stock price."

For more ratings news on MercadoLibre click here and for the rating history of MercadoLibre click here.

Shares of MercadoLibre closed at $65.78 yesterday.

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