MercadoLibre (NASDAQ:MELI) Upgraded at Citigroup

Key Points

• Citigroup upgraded MercadoLibre from “neutral” to “buy” and set a $2,050 price target, implying 22.85% upside from the reported current price.
• Analyst sentiment is broadly positive: 13 analysts rate the stock a Buy and five a Hold, producing a “Moderate Buy” consensus with an average target of $2,248.75.
• MercadoLibre reported strong quarterly results, beating EPS and revenue estimates while revenue grew 49.8% year over year; however, the stock was down 7.8% amid political concerns, valuation worries and potential margin pressure.

MercadoLibre (NASDAQ:MELI - Get Free Report) was upgraded by Citigroup from a "neutral" rating to a "buy" rating in a research note issued on Tuesday, MarketBeat.com reports. The firm presently has a $2,050.00 price objective on the stock. Citigroup's target price would indicate a potential upside of 22.85% from the stock's current price.

MELI has been the subject of several other reports. New Street Research started coverage on MercadoLibre in a report on Wednesday, September 23rd. They issued a "buy" rating and a $2,450.00 target price for the company. Susquehanna boosted their price objective on MercadoLibre to $2,400.00 and gave the stock a "positive" rating in a report on Tuesday, October 6th. Zacks Research raised MercadoLibre from a "strong sell" rating to a "hold" rating in a research note on Monday, July 13th. Cantor Fitzgerald reduced their price target on shares of MercadoLibre from $2,300.00 to $2,200.00 and set an "overweight" rating on the stock in a research report on Monday, October 12th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of MercadoLibre in a research note on Tuesday, September 29th. Thirteen equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, MercadoLibre presently has an average rating of "Moderate Buy" and an average price target of $2,248.75.

MercadoLibre Stock Down 7.8%

NASDAQ MELI opened at $1,668.72 on Tuesday. MercadoLibre has a twelve month low of $1,495.00 and a twelve month high of $2,428.00. The stock has a market cap of $84.60 billion, a PE ratio of 45.38, a PEG ratio of 1.27 and a beta of 1.31. The firm has a 50-day simple moving average of $1,859.34 and a 200 day simple moving average of $1,828.64. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.10 and a current ratio of 1.12.

MercadoLibre (NASDAQ:MELI - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported $9.19 EPS for the quarter, beating analysts' consensus estimates of $8.65 by $0.54. MercadoLibre had a net margin of 5.30% and a return on equity of 26.54%. The firm had revenue of $10.17 billion for the quarter, compared to analyst estimates of $9.79 billion. During the same period in the previous year, the business earned $10.31 earnings per share. The company's revenue for the quarter was up 49.8% compared to the same quarter last year. On average, research analysts forecast that MercadoLibre will post 38.09 EPS for the current year.

Institutional Investors Weigh In On MercadoLibre

A number of hedge funds have recently made changes to their positions in MELI. BlackRock Inc. purchased a new position in MercadoLibre during the second quarter worth $2,246,015,000. Janus Henderson Group PLC boosted its stake in shares of MercadoLibre by 1.7% during the first quarter. Janus Henderson Group PLC now owns 614,238 shares of the company's stock valued at $1,062,019,000 after purchasing an additional 10,142 shares in the last quarter. Linonia Partnership LP grew its stake in MercadoLibre by 325.1% in the second quarter. Linonia Partnership LP now owns 553,788 shares of the company's stock valued at $939,994,000 after purchasing an additional 423,527 shares during the last quarter. Jupiter Topco LLC purchased a new position in MercadoLibre in the second quarter worth $917,123,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in shares of MercadoLibre by 7.9% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 533,816 shares of the company's stock worth $906,094,000 after acquiring an additional 38,871 shares during the last quarter. 87.62% of the stock is currently owned by hedge funds and other institutional investors.

MercadoLibre News Roundup

Here are the key news stories impacting MercadoLibre this week:

• Positive Sentiment: Some analysts view the post-election selloff as a potential buying opportunity. MercadoLibre continues to benefit from strong e-commerce sales, rising buyer engagement and logistics improvements, while recent earnings showed revenue growth of nearly 50% year over year and a quarterly EPS beat. Why MercadoLibre stock's post-election dip is a buying opportunity
• Positive Sentiment: MercadoLibre was identified as one of several stocks potentially marked down too far ahead of important earnings or other catalysts. A reported average analyst price target of $2,251.88 also suggests substantial upside if political concerns ease and business momentum continues. Buy the Dip: 4 Stocks the Market Marked Down Too Far Ahead of Big Catalysts
• Neutral Sentiment: Compared with Uber Technologies, MercadoLibre generates less revenue in absolute terms, although both companies have maintained a consistent upward revenue trend through mid-2026. The comparison highlights MercadoLibre’s smaller scale but does not indicate a change in its growth trajectory. MercadoLibre vs. Uber Technologies: Comparing Recent Quarterly Revenue Trends
• Neutral Sentiment: Data reporting a large increase in short interest simultaneously lists total short interest at zero shares and a zero-day days-to-cover ratio. If accurate, this provides no evidence of meaningful short-selling pressure or a potential short squeeze.
• Negative Sentiment: President Luiz Inácio Lula da Silva’s surprise election victory disrupted expectations for a more market-friendly Brazilian administration. Investors are reducing bets on tighter government spending and lower corporate taxes, pressuring Brazil-focused equities and MercadoLibre in particular. Brazilian Stocks Tumble as Lula Wins Surprise Fourth Term
• Negative Sentiment: Despite robust marketplace growth, investors remain concerned that margin pressure and MercadoLibre’s premium valuation leave less room for political or macroeconomic disappointments. Can MercadoLibre Keep Expanding Marketplace Leadership?

About MercadoLibre

MercadoLibre, Inc is a technology company that operates an online commerce and financial services ecosystem across Latin America. Founded in 1999 by Marcos Galperin, the company initially developed an online marketplace and has expanded into a broad platform connecting buyers and sellers with businesses and consumers.

Its commerce operations include the MercadoLibre marketplace, where users can purchase and sell products across numerous categories. The company also offers supporting services such as Mercado Envíos for shipping and logistics, Mercado Ads for digital advertising, and tools for merchants to manage their online businesses.

MercadoLibre's financial technology business is centered on Mercado Pago, which provides digital payment processing, online checkout, money transfer and account services.

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