Mercadolibre (MELI) Rating Lowered to Underperform at BBA Icatu Securities

Mercadolibre (NASDAQ:MELI) was downgraded by analysts at BBA Icatu Securities from an “outperform” rating to an “underperform” rating in a research report issued to clients and investors on Wednesday, May 8th, The Fly reports. They currently have a $520.00 price objective on the stock, up from their prior price objective of $400.00. BBA Icatu Securities’ price objective would suggest a potential downside of 8.86% from the company’s previous close.

A number of other research firms have also weighed in on MELI. Susquehanna Bancshares upgraded shares of Mercadolibre from a “negative” rating to a “neutral” rating in a research note on Friday, May 3rd.
Barclays reiterated a “buy” rating on shares of Mercadolibre in a research note on Sunday, May 5th. Goldman Sachs Group began coverage on shares of Mercadolibre in a research note on Tuesday, February 5th. They issued a “buy” rating and a $438.00 price objective for the company. JPMorgan Chase & Co. lifted their price objective on shares of Mercadolibre from $430.00 to $515.00 and gave the company an “overweight” rating in a research note on Monday, March 11th. Finally, BTIG Research raised their price target on shares of Mercadolibre to $535.00 and gave the company a “buy” rating in a report on Wednesday, March 13th. One analyst has rated the stock with a sell rating, six have issued a hold rating, nine have issued a buy rating and one has issued a strong buy rating to the company. Mercadolibre has a consensus rating of “Buy” and a consensus target price of $498.08.

NASDAQ:MELI opened at $570.52 on Wednesday. The company has a quick ratio of 2.82, a current ratio of 2.82 and a debt-to-equity ratio of 0.34. The stock has a market capitalization of $28.14 billion, a price-to-earnings ratio of -695.76 and a beta of 2.14. Mercadolibre has a 52 week low of $257.52 and a 52 week high of $611.96.

Mercadolibre (NASDAQ:MELI) last issued its quarterly earnings results on Thursday, May 2nd. The company reported $0.13 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.01) by $0.14. Mercadolibre had a negative net margin of 0.74% and a negative return on equity of 1.55%. The company had revenue of $474.00 million during the quarter, compared to analyst estimates of $423.19 million. During the same quarter last year, the business posted ($0.29) EPS. Mercadolibre’s quarterly revenue was up 47.7% compared to the same quarter last year. Equities analysts forecast that Mercadolibre will post 1.16 earnings per share for the current year.

In related news, Director Emiliano Calemzuk acquired 120 shares of the company’s stock in a transaction dated Saturday, March 9th. The stock was bought at an average cost of $414.14 per share, with a total value of $49,696.80. Following the acquisition, the director now owns 2,669 shares of the company’s stock, valued at approximately $1,105,339.66. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.40% of the company’s stock.

A number of institutional investors have recently bought and sold shares of the business. Baillie Gifford & Co. lifted its stake in Mercadolibre by 2.3% in the fourth quarter. Baillie Gifford & Co. now owns 5,208,620 shares of the company’s stock worth $1,525,344,000 after purchasing an additional 117,948 shares during the last quarter. FMR LLC increased its position in shares of Mercadolibre by 24.8% in the first quarter. FMR LLC now owns 1,270,693 shares of the company’s stock valued at $645,170,000 after acquiring an additional 252,698 shares during the period. OppenheimerFunds Inc. increased its position in shares of Mercadolibre by 9.1% in the first quarter. OppenheimerFunds Inc. now owns 1,099,806 shares of the company’s stock valued at $558,403,000 after acquiring an additional 91,900 shares during the period. Viking Global Investors LP purchased a new position in shares of Mercadolibre in the first quarter valued at about $310,664,000. Finally, Jennison Associates LLC increased its position in shares of Mercadolibre by 29.8% in the first quarter. Jennison Associates LLC now owns 429,092 shares of the company’s stock valued at $217,863,000 after acquiring an additional 98,432 shares during the period.

About Mercadolibre

MercadoLibre, Inc operates online commerce platforms in Latin America. It operates MercadoLibre Marketplace, an automated online commerce platform that enables businesses and individuals to list merchandise and conduct sales and purchases online; and MercadoPago FinTech, 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, and allows merchants to process transactions via their Websites and mobile apps, as well as in their brick-and-mortar stores through QR and mobile points of sale.

Further Reading: Overbought

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Analyst Recommendations for Mercadolibre (NASDAQ:MELI)

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