Redburn Initiates Coverage on MercadoLibre with Promising Buy Recommendation

Analysts Predict Positive Growth Ahead

Fintel reports that on October 11, 2024, Redburn Atlantic initiated coverage of MercadoLibre (NasdaqGS:MELI) with a Buy recommendation.

Analyst Price Forecast Suggests 11.17% Upside

As of September 25, 2024, the average one-year price target for MercadoLibre is $2,324.76/share. The forecasts vary between a low of $1,818.00 and a high of $2,803.50. This average target signals an expected increase of 11.17% from its last reported closing price of $2,091.16/share.

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MercadoLibre’s projected annual revenue stands at $16,303 million, reflecting a decrease of 4.71%. Meanwhile, the anticipated annual non-GAAP EPS is 22.41.

Fund Sentiment Shows Growing Interest

Currently, 2,007 funds or institutions report holdings in MercadoLibre. This marks an increase of 57 investors, or 2.92%, compared to the last quarter. The average portfolio weight dedicated to MELI has grown by 1.90% to 0.91%. Total institutional ownership rose by 0.22% over the past three months, totaling 50,801K shares. The put/call ratio for MELI is 1.13, indicating a bearish outlook among options traders.

Insights on Major Shareholders

Baillie Gifford holds 4,846K shares, which accounts for 9.56% ownership of the company. Previously, they owned 5,037K shares, showing a decrease of 3.93%. However, their overall investment in MELI increased by 4.74% last quarter.

Capital Research Global Investors possesses 2,331K shares, representing 4.60% ownership. This is down from 2,360K shares previously, marking a decrease of 1.26%. Nevertheless, this firm raised its allocation by 4.10% over the last quarter.

JPMorgan Chase currently holds 1,814K shares, representing 3.58% ownership, a drop from 2,077K shares—down 14.51%—compared to the earlier filing. Their MELI allocation decreased by 7.82% last quarter.

Jennison Associates has increased its holdings, owning 1,804K shares, which is 3.56% of the company, a slight rise of 0.35% from 1,797K shares previously. They boosted their MELI investment by 4.56% last quarter.

Lastly, VWIGX – Vanguard International Growth Fund Investor Shares holds 1,289K shares, or 2.54% ownership, having decreased from 1,361K shares (down 5.58%). Their portfolio allocation in MELI rose by 0.42% over the last quarter.

About MercadoLibre

Background Information
(Company description follows.)

Founded in 1999, MercadoLibre is the leading online commerce platform in Latin America. It serves as both a regional marketplace and a provider of essential digital tools that empower businesses and individuals to engage in trade across the region. The company’s marketplace facilitates buying and selling in most of Latin America, and includes online classifieds for various sectors.

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This story originally appeared on Fintel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.