UPDATE: Credit Suisse Raises PT On MercadoLibre Inc As Continued Take Rate Benefit Offsets Currency Headwinds

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In a report published Thursday, Credit Suisse analyst Stephen Ju reiterated a Neutral rating on
MercadoLibre IncMELI
, and raised the price target from $90.00 to $101.00. In the report, Credit Suisse noted, “Investor focus has traditionally been on items sold as that metric has always been the purest indicator of MELI's growth, but we expect a shift to the take rate for 3Q14 given that this accounted for nearly all of the upside in 2Q14. The monetization outperformance is attributable directly to more favorable country mix, removal of caps on insertion fees, take rate hikes near the end of the quarter as well as more meaningful adoption of MercadoPago off-platform,. The benefit from our improved outlook is offset by a ~5% currency headwind as the USD strengthened against most of the major LatAm currencies.” MercadoLibre closed on Wednesday at $113.75.
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Posted In: Analyst ColorPrice TargetAnalyst RatingsCredit SuisseStephen Ju
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