UPDATE: Piper Jaffray Reiterates Overweight Rating, Raises PT on MercadoLibre on Secular Growth Drivers

In a report published Wednesday, Piper Jaffray analyst Gene Munster reiterated an Overweight rating on

, and raised the price target from $123.00 to $151.00. In the report, Piper Jaffray noted, “The key long term question for shares of MELI is what should the leader in Latin America eCommerce be worth? On traditional valuation metrics the stock appears overvalued, trading at 33x Street 2014 earnings and likely to grow earnings and local currency GMV at ~25% for the next couple of years. More important, there are three secular growth drivers that should benefit MercadoLibre for the next decade (growth of eCommerce, Latin America, and mobile), and therefore we believe a more useful valuation framework is to look at what investors are paying for the eCommerce opportunity in the US and adjusting that for market share differences and for purchasing power difference between the US and Latin America. This framework yields a MELI valuation of $8.3B, vs. $5.2B today. This is a framework, not a price target, however we are raising our price target to $151, which implies a $6.7B market cap.” MercadoLibre closed on Tuesday at $113.62.