Susquehanna Issues Pessimistic Forecast for MercadoLibre (NASDAQ:MELI) Stock Price

Key Points

• Analysts at Susquehanna have lowered their target price for MercadoLibre from $2,975.00 to $2,900.00, while still maintaining a "positive" rating, indicating a potential upside of 35.92%.
• The stock currently holds a consensus rating of "Moderate Buy" with an average price target of $2,810.88, reflecting mixed opinions among brokerages.
• Despite a recent earnings miss, MercadoLibre reported a revenue increase of 33.8% year-over-year, providing a preview of its financial health amidst shifting analyst perspectives.

MercadoLibre (NASDAQ:MELI - Get Free Report) had its target price decreased by analysts at Susquehanna from $2,975.00 to $2,900.00 in a research report issued to clients and investors on Monday,Benzinga reports. The brokerage currently has a "positive" rating on the stock. Susquehanna's target price points to a potential upside of 35.92% from the company's current price.

Several other brokerages have also recently commented on MELI. Weiss Ratings reiterated a "buy (b)" rating on shares of MercadoLibre in a research report on Wednesday, October 8th. Barclays decreased their target price on MercadoLibre from $3,100.00 to $3,000.00 and set an "overweight" rating for the company in a research report on Wednesday, July 23rd. JPMorgan Chase & Co. cut their price target on shares of MercadoLibre from $2,700.00 to $2,600.00 and set a "neutral" rating on the stock in a research report on Friday, October 3rd. Raymond James Financial reaffirmed a "strong-buy" rating and issued a $2,750.00 target price on shares of MercadoLibre in a research note on Tuesday, August 5th. Finally, Jefferies Financial Group reissued a "hold" rating and set a $2,800.00 price target on shares of MercadoLibre in a research report on Tuesday, August 5th. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $2,810.88.

MercadoLibre Stock Performance

NASDAQ MELI opened at $2,133.67 on Monday. The company has a debt-to-equity ratio of 0.61, a current ratio of 1.20 and a quick ratio of 1.18. The company's fifty day moving average is $2,363.50 and its two-hundred day moving average is $2,347.84. MercadoLibre has a 52-week low of $1,646.00 and a 52-week high of $2,645.22. The firm has a market capitalization of $108.18 billion, a price-to-earnings ratio of 52.70, a P/E/G ratio of 1.43 and a beta of 1.46.

MercadoLibre (NASDAQ:MELI - Get Free Report) last posted its quarterly earnings results on Monday, August 4th. The company reported $10.31 EPS for the quarter, missing the consensus estimate of $12.01 by ($1.70). MercadoLibre had a net margin of 8.52% and a return on equity of 43.06%. The firm had revenue of $6.79 billion during the quarter, compared to analyst estimates of $6.57 billion. During the same period last year, the company earned $10.48 EPS. The company's revenue was up 33.8% on a year-over-year basis. Equities research analysts forecast that MercadoLibre will post 43.96 EPS for the current year.

Institutional Trading of MercadoLibre

A number of large investors have recently added to or reduced their stakes in the company. Jennison Associates LLC lifted its stake in MercadoLibre by 7.0% in the 2nd quarter. Jennison Associates LLC now owns 1,235,240 shares of the company's stock valued at $3,228,460,000 after purchasing an additional 81,124 shares during the last quarter. Lavaca Capital LLC grew its position in shares of MercadoLibre by 140,201.3% in the second quarter. Lavaca Capital LLC now owns 1,066,290 shares of the company's stock valued at $2,786,888,000 after purchasing an additional 1,065,530 shares during the last quarter. Invesco Ltd. increased its stake in shares of MercadoLibre by 22.4% during the first quarter. Invesco Ltd. now owns 570,967 shares of the company's stock worth $1,113,881,000 after purchasing an additional 104,554 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in MercadoLibre by 21.2% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 550,433 shares of the company's stock worth $1,073,823,000 after purchasing an additional 96,283 shares during the last quarter. Finally, Generation Investment Management LLP boosted its stake in MercadoLibre by 3.3% in the 1st quarter. Generation Investment Management LLP now owns 530,564 shares of the company's stock valued at $1,035,061,000 after purchasing an additional 16,878 shares during the period. Institutional investors and hedge funds own 87.62% of the company's stock.

About MercadoLibre

MercadoLibre, Inc operates online commerce platforms in the United States. It operates Mercado Libre Marketplace, an automated online commerce platform that enables businesses, merchants, and individuals to list merchandise and conduct sales and purchases digitally; and Mercado Pago FinTech platform, a financial technology solution platform, which facilitates transactions on and off its marketplaces by providing a mechanism that allows its users to send and receive payments online, as well as allows users to transfer money through their websites or on the apps.

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