Morgan Stanley says MELI is a top pick that could surge nearly 40%
Investors should consider buying shares of MercadoLibre , according to Morgan Stanley. Analyst Andrew Ruben reiterated an overweight rating on MercadoLibre and named it a top pick, saying the Latin American e-commerce and payments company has “multiple sources for earnings upside.” “With new EBIT-level builds for eight MELI business lines, we see a durable base of profitable growth drivers,” Ruben wrote Thursday. MELI 1D mountain MercadoLibre shares 1-day The analyst’s $1,770 price target implies roughly 40% upside from Thursday’s closing price of $1,266.80. MercadoLibre shares are 49% higher in 2023, though that follows two dismal years. In 2022, the stock fell 37% and dropped more than 19% in 2021. However, the analyst expects MercadoLibre can take advantage of growth opportunities both in e-commerce and fintech. Not only can MercadoLibre better monetize its marketplace through advertising and logistics, it’s also expected to expand its core payment processing and mobile wallet business. “Through the mosaic of company filings, industry conversations, and peer company analysis, our new expense breakdowns enable a level of model granularity that we believe is differentiated on the Street — driving increases to our already above-consensus forecasts,” Ruben wrote. —CNBC’s Michael Bloom contributed to this report.