J.P. Morgan analyst Marcelo Santos downgrades $MercadoLibre (MELI.US)$ to a hold rating, and sets the target price at $2,400.
According to TipRanks data, the analyst has a success rate of 62.7% and a total average return of 9.0% over the past year.
Furthermore, according to the comprehensive report, the opinions of $MercadoLibre (MELI.US)$'s main analysts recently are as follows:
The overall e-commerce trends have shown stability, recovering from a dip in July. It's noted that there has been a recent increase in investor sentiment towards mid-cap e-commerce companies due to easing concerns over certain market players, potential regulatory changes, and interest rate reductions. However, there is a cautionary note that a possible port strike on the East Coast could dampen this optimism when looking at third-quarter results and the forthcoming holiday season.
The 62% increase in MercadoLibre's stock value over the past year is seen as a factor limiting potential for upward consensus revisions. There is an anticipation of short-term pressure on the company's results, which may arise from the expansion of the credit card business and significant enhancements in logistics. Additionally, a standardization of the income tax rate and potential currency losses are expected to impact financial outcomes. The firm suggests that the company's credit performance may face challenges due to the credit card segment and new distribution centers could affect profit margins.
Note:
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