UPDATE: Morgan Stanley Downgrades Mercadolibre on Poor Risk-Reward

In a report published Monday, Morgan Stanley analyst Michel Morin downgraded the rating on

from Equal-Weight to Underweight, but named a $75.00 price target. In the report, Morgan Stanley noted, “Valuation does not adequately reflect growing macro risks in our view. Solid execution and secular tailwinds may allow MELI to grow into its valuation over time, but the risk-reward looks poor, despite the recent pullback. We trim estimates, lower our PT to $75, and downgrade to UW.” Mercadolibre closed on Friday at $114.17.