MercadoLibre Dominates Latin American eCommerce Space, Says Analyst

Wedbush analyst Scott Devitt reiterated an Outperform rating on the shares of MercadoLibre Inc MELI with a price target of $2,000.

MercadoLibre is an eCommerce platform in Latin America, with the largest market share of online retail in its three key markets of Brazil, Argentina, and Mexico.

eCommerce and digital financial services are relatively early in their adoption in the region, and MercadoLibre is well positioned for the secular shift online, notes the analyst.

MercadoLibre, according to the analyst, has an exceptional management team and a defensible moat supported by decades of investment.

The strong logistics footprint of the company is capable of fulfilling about 50% of shipments, says the analyst.

The combination of rising fulfillment adoption and the layering in of advertising revenue is driving take rate expansion as MercadoLibre continues to deepen the monetization of its marketplace.

The analyst sees a clear path to higher monetization over time driven by fulfillment adoption, advertising growth, and scale.

Price Action: MELI shares are trading lower by 2.53% at $1,520.61 on the last check Tuesday.

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