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Here's The Reason Goldman Sachs Is Bullish On MercadoLibre Stock
MELIMercadoLibre(MELI) MarketBeat· MarketBeat·2025-05-10 11:16

Core Viewpoint - Analysts from Goldman Sachs have adopted a bullish stance on MercadoLibre, indicating potential growth opportunities in the e-commerce sector, particularly in the context of trade tariffs affecting other companies like Alibaba and Amazon [2][3][10]. Company Overview - MercadoLibre Inc. (NASDAQ: MELI) is a leading player in the Latin American e-commerce market, benefiting from its strong position amid trade tariff uncertainties [3][6]. - The company reported over 100 million annual unique buyers, which serves as a significant foundation for financial growth [8]. Financial Performance - MercadoLibre's gross market value (GMV) grew by 8% over the past 12 months, reaching 14.5billionforQ42024[9].Thecompanyreportedquarterlyrevenueof14.5 billion for Q4 2024 [9]. - The company reported quarterly revenue of 6.1 billion, marking a 37% increase compared to the previous year, indicating strong growth potential [9]. - Analysts forecast a 12-month stock price target of 2,504.67,suggestinga2.132,504.67, suggesting a 2.13% upside from the current price of 2,452.53 [10]. Analyst Ratings and Predictions - Goldman Sachs has reiterated a Buy target with a valuation of 2,750forMercadoLibre,reflectingconfidenceinthecompanysfutureperformance[10].BarclaysanalystshavealsoissuedanOverweightratingwithahighervaluationof2,750 for MercadoLibre, reflecting confidence in the company's future performance [10]. - Barclays analysts have also issued an Overweight rating with a higher valuation of 3,100 per share, indicating a potential 30% upside from current prices [11][12]. - Analysts predict earnings per share (EPS) could reach 10.15forQ32025,a3010.15 for Q3 2025, a 30% increase from the current EPS of 7.82, aligning with the optimistic outlook from both Goldman and Barclays [12].