Market Overview

Stifel Downgrades MercadoLibre, Says It's Been A 'Buena Carrera'

Share:

In a report published Tuesday, analysts at Stifel downgraded Mercadolibre Inc (NASDAQ: MELI) from Buy to Hold. The analysts expressed their concerns regarding the stock valuation and tough comps associated with the company's recent initiatives.

The stock has rallied more than 50 percent over the last nine months, relative to the S&P 500 return of 11 percent. However, the rise in the share price is likely to slow due to tough comps, following a year of robust new product initiatives by the company.

"We continue to be positive on MercadoLibre's long-term prospects and have strong respect for its management team," the analysts said.

While Stifel believes the company has already realized much of the tailwinds from the Pago and Envios initiatives in Brazil, and MercadoLibre is now expected to face difficult comps during a period of rising FX adjusted revenue growth in the next three quarters.

"While we expect penetration to continue in other geographies we note that the financial impact will likely be less significant than what we saw from Brazil," the analysts added.

Latest Ratings for MELI

DateFirmActionFromTo
Sep 2019UpgradesNeutralBuy
Sep 2019UpgradesHoldBuy
Aug 2019MaintainsBuy

View More Analyst Ratings for MELI
View the Latest Analyst Ratings

Posted-In: StifelAnalyst Color Upgrades Analyst Ratings

 

Related Articles (MELI)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
ELMDDougherty & Co.Initiates Coverage On12.0
MRNSCantor FitzgeraldAssumes7.0
MNRLCapital One FinancialInitiates Coverage On23.0
SONVertical GroupUpgrades
UNPMorgan StanleyMaintains136.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Wunderlich: Dish Still A 'Sell'

Morning Market Gainers