MercadoLibre (NASDAQ: MELI) was downgraded by JPMorgan Chase from an “overweight” rating to a “neutral” rating in a research note issued on Friday, TheFlyOnTheWall.com reports. They currently have a $101.00 price objective on the stock. JPMorgan Chase’s price objective suggests a potential downside of 13.58% from the stock’s previous close.
The analysts wrote, “We see valuation as fair given existing downside risks, including: (1) devaluation in Venezuela, as parallel markets are trading at 28.4 VEF/USD, ~350% above official rates of 6.3; (2) Brazilian currency depreciating further; (3) increase in competition, with large players such as Amazon launching market place operations in LatAm; (4) economic weakness in the region, softening consumption. It is noteworthy that Argentina parallel FX markets also points to a potential devaluation, but impact on MELI should be low, in our view, as their costs tend to compensate for their revenues in that country.”
Shares of MercadoLibre (NASDAQ: MELI) opened at 116.87 on Friday. MercadoLibre has a 52 week low of $64.18 and a 52 week high of $101.35. The stock’s 50-day moving average is currently $94.28. The company has a market cap of $5.160 billion and a P/E ratio of 52.31.
MercadoLibre (NASDAQ: MELI) last posted its quarterly earnings results on Monday, May 6th. The company reported $0.53 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.54 by $0.01. The company had revenue of $102.70 million for the quarter, compared to the consensus estimate of $97.44 million. During the same quarter last year, the company posted $0.45 earnings per share. MercadoLibre’s revenue was up 22.7% compared to the same quarter last year. Analysts expect that MercadoLibre will post $2.80 EPS for the current fiscal year.
Several other analysts have also recently commented on the stock. Analysts at Zacks downgraded shares of MercadoLibre from an “outperform” rating to a “neutral” rating in a research note to investors on Wednesday, May 29th. They now have a $127.20 price target on the stock. Separately, analysts at Pacific Crest raised their price target on shares of MercadoLibre from $95.00 to $120.00 in a research note to investors on Wednesday, May 8th. Finally, analysts at Credit Suisse raised their price target on shares of MercadoLibre from $91.00 to $104.00 in a research note to investors on Wednesday, May 8th. They now have a “neutral” rating on the stock.
Eight equities research analysts have rated the stock with a hold rating, The company presently has an average rating of “Hold” and a consensus target price of $112.17.
The company also recently announced a quarterly dividend, which is scheduled for Monday, July 15th. Shareholders of record on Friday, June 28th will be paid a dividend of $0.14 per share. This represents a $0.57 annualized dividend and a dividend yield of 0.49%. The ex-dividend date is Wednesday, June 26th.
MercadoLibre, Inc. hosts an online commerce platform in Latin America, called MercadoLibre and located at www.