UPDATE: Bank of America Downgrades MercadoLibre to Neutral on Prevailing Valuations

In a report published Friday, Bank of America analyst Robert Ford downgraded the rating on MercadoLibre

from Buy to Neutral, but reiterated the $108.00 price target. In the report, Ford noted, “MELI is well-positioned to benefit from growing regional e-commerce penetration, and we remain highly constructive on MELI's strategic positioning and long-term growth prospects. However, prevailing valuations could leave shares vulnerable to short-term disappointment, in the form of slower growth rates, calendar and currency impacts. Nearly 40% of country contributions come from the currency-controlled and highly inflationary markets of Venezuela and Argentina.” MercadoLibre closed on Thursday at $100.73.