MercadoLibre (MELI) PT Raised to $2,300 at Susquehanna

Susquehanna analyst James Friedman raised the price target on MercadoLibre (NASDAQ: MELI) to $2,300.00 (from $2,000.00) while maintaining a Positive rating.

The analyst commented: 'Credit is visibly back! The July FIDC data implies credit book expansion of 4.2% M/M, a strong acceleration over 2Q's average monthly change of ~+0.8% (Figure 1). Combining this with management's recent commentary at our conference about the prioritization of credit card issuance, SFG believes 3Q24's setup could be more credit
heavy. On the NPL front, top-of-the-funnel (overdue 1-30 days) delinquencies fell (20 bps) M/M once more to 5.5%. The quality of loan repayment could be a driver of the more aggressive credit originations. While upfront provisioning should work as a headwind to margins, the magnitude may be more tempered, given the healthy collections environment. Please e-mail me or SFG sales for our historic FIDC data and related supporting research. Raising Price Target to $2,300. The past few years have seen a period of particularly heavy investment for MELI (MELI+, logistics, and adtech). While this is a journey rather than a destination, the recent rapid acceleration across the company's products and regions may anticipate a future period of sustained growth. We are substantially ahead of consensus in the next few years and are raising our price target to reflect this outcome, expanding our target multiple and price target to $2,300."

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