MercadoLibre: High-Growth EM Stock With 100% Upside Potential

Core Viewpoint - MercadoLibre is well-positioned for sustained high-quality growth over the next decade, despite being highly valued relative to its 2024 estimates, with a price multiple that does not fully reflect its potential [3][4]. Financial Performance - In Q4, MercadoLibre reported net revenue of $12.61 billion, representing a 37.4$12.61, up nearly 60% year-over-year, significantly surpassing consensus forecasts by more than $5.00 [8]. Market Position and Valuation - MercadoLibre trades at only 7x its 2033 forecasts, while peers like Amazon and Walmart trade at 15x to 21x their 2033 estimates, suggesting a potential stock price increase of 100$2,320.31, indicating a 2.23% upside based on 17 analyst ratings, with a high forecast of $3,000.00 [10]. Growth Strategy - The company plans to continue expanding its capacity in 2025, showing clear momentum with solid double-digit growth across its primary markets [9]. - Despite not returning significant capital to shareholders through dividends or buybacks, MercadoLibre is self-funding its growth and has a strong balance sheet [11]. Analyst Sentiment - Analysts show a positive shift in sentiment for MercadoLibre, with increased coverage and a high conviction in the Buy rating, alongside upgrades and price target revisions [13].