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Summary

  • MercadoLibre has earned a ‘buy’ rating from analysts after the release of its financial results for Q1 2023.
  • As per data on EODHD/Others, analysts retain a price target of US$ 1,485.53 for MELI, which is an upside potential of 16.06% on its closing price on May 3, 2023.
  • The Argentinian company has taken over Amazon as the most chosen e-commerce portal in its home country.

MercadoLibre (NASDAQ: MELI) released its financial results for the first quarter of 2023, showcasing a major increase in its net revenue. The earnings release led to the company receiving a ‘Buy’ rating from brokers.

MercadoLibre is an e-commerce technology giant, catering to consumers and businesses who buy and sell goods online. As per EODHD/Others, the consensus analysts’ rating on the stock as on May 3, 2023 was ‘Buy’ and the consensus mean price target on the stock was US$ 1,485.53, indicating an upside potential of 16.06% over its closing price of US$ 1,279.99 on May 3, 2023.

MELI shares hit  a 52-week high of US$ 1,337.75 on April 18, 2023.

What analysts are saying about MELI

EODHD/Others data suggests that majority of the analysts have given MELI stock a ‘Buy’ rating. As per the data, five analysts have given the stock a ‘Strong Buy’ rating, twelve analysts have given it a ‘Buy’ rating and two analysts have given it a ‘Hold’ rating as on May 3, 2023. However, none of the analysts gave MELI a ‘Sell’ or ‘Strong Sell’ rating as on May 3, 2023.

© 2023 Krish Capital Pty. Ltd.; Data source: EODHD/Others

MercadoLibre earned an ‘Outperform’ rating from Santander and Bradesco SA Corretora. Both brokers revised their ratings after the company released its financial results for Q1 2023 on May 3, 2023. Santander gave MELI a price target of US$ 1,500, which is 17.19% higher than its closing price on May 3, 2023.

Source: EODHD/Others

The stock closed at US$ 1,279.99 on May 3, 2023.

On the other hand, Bradesco was more bullish on MELI, as it gave a price target of US$ 1,750, which is 36.72% higher than the stock’s closing price on May 3, 2023.

The broker highlighted MELI’s financial strength as the main reason for this rating and stated that the company showed resilience. Bradesco also stated that MELI continues to grow at an accelerated rate despite rising prices.

A snapshot of MELI’s financial results

MercadoLibre reported net revenue of US$ 3 billion in Q1 2023. This marked a year-on-year FX-neutral growth of 58.4%. Additionally, the gross merchandise volume during Q1 2023 was US$ 9.4 billion, marking a 43% year-on-year FX-neutral growth.

The company’s major geographies include Argentina, Brazil and Mexico, all of which delivered stronger trends in items sold and unique buyers than the previous quarter.

MELI’s financial success has put it under same umbrella as some of the largest e-commerce companies such as Amazon. The Argentinian giant has beaten Amazon in its home country and has become the most opted for e-commerce portal.