Benchmark analysts launched coverage on MercadoLibre (MELI, Financials) with a Buy rating and a $2,500 price target, pointing to the company's strong position in Latin America's fast-growing e-commerce and fintech sectors. Shares were trading near $2,037 on Tuesday.
The company posted $20.78 billion in revenue last year, up 37.5% from the prior year, with gross margins at 52.67%, according to InvestingPro. MercadoLibre holds about 25% of Latin America's online retail market and has averaged 55% revenue growth over the past five years.
Benchmark said the company is well-placed to ride a wave of digital adoption in the region, where online shopping is still in its early stages. MercadoLibre's growing fintech business also offers new opportunities as more consumers shift from cash to digital payments.
To support its expansion, MercadoLibre is investing $5.8 billion in Brazil this year, a nearly 48% jump from 2024, and plans to hire 14,000 workers. In Mexico, the company expects to add another 10,000 employees by 2025.
Other analysts are bullish as well. Jefferies raised its target to $2,450, while Raymond James set a $2,650 target, both citing strong earnings momentum and fintech growth.
