JPMorgan Upgrades MercadoLibre (MELI) to Overweight Amid Strong Brazil Growth

Group 1 - MercadoLibre, Inc. (NASDAQ:MELI) is recognized as one of billionaire Stanley Druckenmiller's top stock picks [1] - JPMorgan upgraded MercadoLibre from Neutral to Overweight on February 12, citing reduced competition, lower risk earnings projections, and strong growth in Brazil [1] - The firm noted that competition pressures have diminished as Shopee increased its take rates to levels similar to MercadoLibre's for higher-end items [1] Group 2 - JPMorgan no longer expects significant downside to market projections for 2026 and 2027 financial results, with estimates having been significantly reduced since mid-2025 due to competition concerns [3] - The firm projects continued growth in Brazil, MercadoLibre's largest market, with GMV expected to rise by over 30% in local currency during Q4, driven by clearer comparisons and increased app usage [4] - Revenue, operating profit, and earnings are anticipated to grow by 35%, 34%, and 41% in 2026, respectively, due to currency appreciation in Brazil and Mexico, margin improvements, and rapid credit growth [4] Group 3 - MercadoLibre operates an online commerce platform and related services across four geographical segments: Brazil, Argentina, Mexico, and Other Countries [5]