UPDATE: MercadoLibre Upgraded by Stifel, Sees Venezuela, Argentina Concerns Discounted
Stifel Nicolaus upgraded MercadoLibre (NASDAQ: MELI) from Sell to Buy and announced a $130 price target. Jordan Rohan, analyst at Stiefel, believes the “strategic value of the company is increasing” as management properly navigates issues in Venezuela and Argentina.
Shares are up 18 percent to $111.50 after crushing analyst earnings and sales estimates Thursday evening.
Venezuela and Argentina “issues are mostly discounted into the share at current levels, with short interest high and prevailing sentiment negative” said Rohan, who is taking a contrarian stance on MercadoLibre, the eBay of Latin America.
Rohan feels “multiple expansion is likely in 2014 due to the increasing strategic importance of eCommerce in LatAm, especially Brazil, and the impressive scale that the payments platform, MercadoPago, has achieved.”
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