UPDATE: Jefferies Downgrades MercadoLibre (MELI) to Hold
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Get Alerts MELI Hot Sheet
25 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 11 | New: 16
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Jefferies analyst John Colantuoni downgraded MercadoLibre (NASDAQ: MELI) from Buy to Hold with a price target of $1,250.00 (from $2,000.00).
The analyst commented, "Heightened macro uncertainty in Brazil (~60% of Revenue) could hold back near-term valuation despite MELI’s ideal position to benefit over the long-term from attractive secular shifts in e-commerce and payments across LatAm. Brazil has taken a proactive approach to combating recent inflationary pressures through higher interest rates (T-Bills up from 7% in July to 12% in November), which could compress profitability or stymie adoption for MELI’s nascent credit offering. We also observed a sizeable moderation in usage growth for the e-commerce app (including on a 2-year basis) in November, which has had a strong correlation with reported ex-F/X GMV growth. We expect MELI’s stock trades at the low end of the historical trading range (6-12x NTM EV/Revenue) until macro uncertainty subsides."
For an analyst ratings summary and ratings history on MercadoLibre click here. For more ratings news on MercadoLibre click here.
Shares of MercadoLibre closed at $1156.78 yesterday.
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