JPMorgan Chase Downgrades MercadoLibre to Neutral (MELI)

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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.

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One Response

  1. MLsucks says:

    This company is a joke, I bought and sold items on mercadolivre (mercadolibre) in Brazil for over a year. I had made over 20 purchases and sold over 80 items with 100% postive feedbacks.

    Now I have an issue, I sold something where the buyer paid for via “Boleto” item was delivered, the buyer left me a positive feedback and they are holding my money R$ 370,00 ( $172 USD).

    The only issue was that the shipped the customer asked for was standard ground and it took over 14 days to arrive but the customer was aware of this. So one day before the item arrived he put in a complaint just to cover his butt until the item arrived. The next day when the item arrived the buyer dropped the complaint and issued me a positive feedback.

    Its been over 60 days this company has been giving me the run around with my money. Its shows in my account balance but it is being held without any way of withdrawing it. Every time I contact their support team they tell me to wait 10 days for them to investigate the issue and they never reply back.

    This company is just full of incompetent people and managers. I hear of so many horror stories about this company in Brazil. Mercado Livre in Brazil is on the TOP 10 list of consumer complaints.

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