UPDATE: Deutsche Bank Raises PT to $90 on MercadoLibre on Improved EBITDA

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Deutsche Bank maintained MercadoLibre
MELI
with a Hold rating and raised the price target from $84.00 to $90.00. Deutsche Bank commented, "MELI reported in-line GMV and revenue growth, missed TPV, but EBITDA beat expectations by 12%. Margin improvement was a function of efficiency gains in all line items, especially FX and bad debt. Unit growth was in line-ish with 3Q12, decelerating 170bps to 19.5%, but was up against MELI's toughest comp (270bps vs 3Q) from the 2011 re-platforming. We are cautiously optimistic on MELI, shares are at a premium at over 20x 2013E EBITDA, especially given the currency headwinds, however, we believe unit growth could re-accelerate starting in 2Q from increased customer acquisition. We are raising EBITDA by 7%, our price target is now $90." MercadoLibre closed at $84.56 on Monday.
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Posted In: Analyst ColorPrice TargetAnalyst RatingsDeutsche Bank
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