MercadoLibre (NASDAQ:MELI) Price Target Lowered to $2,380.00 at Benchmark

Key Points

• Benchmark cut its price target on MercadoLibre to $2,380 from $2,780, while keeping a buy rating. The new target still implies about 45.86% upside from the previous close.
• The stock fell sharply, dropping 12.7% to $1,631.74 on unusually heavy volume after the company’s latest earnings report and the wave of analyst target reductions.
• MercadoLibre posted 49% year-over-year revenue growth in the quarter, but EPS of $8.23 missed estimates of $8.75, highlighting strong top-line momentum alongside pressure on profitability.

MercadoLibre (NASDAQ:MELI - Get Free Report) had its price objective cut by analysts at Benchmark from $2,780.00 to $2,380.00 in a research report issued to clients and investors on Friday,Benzinga reports. The firm currently has a "buy" rating on the stock. Benchmark's target price indicates a potential upside of 45.86% from the company's previous close.

A number of other research analysts have also issued reports on the stock. Scotiabank reduced their target price on shares of MercadoLibre from $3,500.00 to $2,800.00 and set a "sector outperform" rating on the stock in a report on Thursday. Barclays reduced their target price on shares of MercadoLibre from $2,600.00 to $2,500.00 and set an "overweight" rating on the stock in a report on Monday, April 20th. Daiwa Securities Group lowered shares of MercadoLibre from a "buy" rating to a "hold" rating and set a $1,800.00 target price on the stock. in a report on Friday. JPMorgan Chase & Co. downgraded shares of MercadoLibre from an "overweight" rating to a "neutral" rating and dropped their price objective for the company from $2,650.00 to $2,100.00 in a research note on Thursday, March 12th. Finally, UBS Group dropped their price objective on shares of MercadoLibre from $2,900.00 to $2,700.00 and set a "buy" rating for the company in a research note on Friday, February 27th. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $2,515.33.

MercadoLibre Trading Down 12.7%

NASDAQ:MELI traded down $238.27 on Friday, reaching $1,631.74. The stock had a trading volume of 2,139,006 shares, compared to its average volume of 549,003. The company has a market cap of $82.73 billion, a price-to-earnings ratio of 41.41, a P/E/G ratio of 0.93 and a beta of 1.41. The company has a debt-to-equity ratio of 0.68, a current ratio of 1.17 and a quick ratio of 1.15. The firm's fifty day moving average is $1,755.81 and its two-hundred day moving average is $1,967.33. MercadoLibre has a 12-month low of $1,593.21 and a 12-month high of $2,645.22.

MercadoLibre (NASDAQ:MELI - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported $8.23 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $8.75 by ($0.52). The firm had revenue of $8.85 billion during the quarter, compared to analysts' expectations of $8.29 billion. MercadoLibre had a net margin of 6.91% and a return on equity of 33.73%. MercadoLibre's revenue for the quarter was up 49.0% on a year-over-year basis. During the same quarter last year, the company posted $9.74 earnings per share. Equities analysts expect that MercadoLibre will post 47.84 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of MELI. Darwin Wealth Management LLC acquired a new stake in MercadoLibre during the 2nd quarter worth approximately $29,000. Laurel Wealth Advisors LLC acquired a new stake in MercadoLibre during the 4th quarter worth approximately $26,000. Transamerica Financial Advisors LLC acquired a new stake in MercadoLibre during the 4th quarter worth approximately $26,000. Purpose Unlimited Inc. acquired a new stake in MercadoLibre during the 4th quarter worth approximately $28,000. Finally, Steigerwald Gordon & Koch Inc. acquired a new stake in MercadoLibre during the 3rd quarter worth approximately $35,000. Institutional investors and hedge funds own 87.62% of the company's stock.

Key Headlines Impacting MercadoLibre

Here are the key news stories impacting MercadoLibre this week:

• Positive Sentiment: MercadoLibre reported a 49% year-over-year surge in revenue, highlighting strong momentum in commerce, fintech, and advertising, along with continued market-share gains. Article Title
• Positive Sentiment: Analysts remained constructive overall despite the selloff, with BTIG keeping a buy rating and Scotiabank maintaining sector outperform, suggesting many still see meaningful upside from current levels. Article Title
• Neutral Sentiment: Management emphasized ongoing investment in free shipping, first-party selection, and fintech products, signaling that profitability may stay under pressure in the near term as MercadoLibre prioritizes growth. Article Title
• Negative Sentiment: The Q1 earnings miss has overshadowed the revenue beat and sparked the stock’s decline, with traders reacting to weaker-than-expected bottom-line results and lower margins versus last year. Article Title
• Negative Sentiment: Daiwa Securities downgraded MercadoLibre from buy to hold, which may add to near-term sentiment pressure even though its price target still implies upside. Article Title

MercadoLibre Company Profile

MercadoLibre, Inc operates an integrated e-commerce and fintech ecosystem serving consumers and businesses across Latin America. The company provides an online marketplace that connects buyers and sellers for a wide range of goods and services, supported by tools for merchants, advertising, and classifieds. Over time MercadoLibre has expanded beyond its marketplace roots into complementary areas that support digital commerce end to end.

Key offerings include its marketplace platform and a suite of logistics and payment services.

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