JPMorgan Upgrades MercadoLibre (MELI) to Overweight

JPMorgan analyst Marcelo Santos upgraded MercadoLibre (NASDAQ: MELI) from Neutral to Overweight with a price target of $2,800.00 (from $2,650.00).

The analyst comments: "Following significant underperformance vs the MSCI LatAm in the last year (flat vs +65%), we upgrade MELI to Overweight from Neutral, on three accounts: (1) Shopee increased its take rates last week, signaling a more benign competitive environment; (2) we no longer see material downside to consensus estimates for 2026E and 2027E; and (3) we believe MELI should be able to sustain a good pace of growth in Brazil in 4Q25, above 30%. Competitive environment shows signs of improvement, with Shopee increasing take rates last week and practically matching MELI’s rates for R $80+ products (link to our note). While part of these gains are given back as PIX subsidies, we believe there are net savings on Shopee’s side. Also, MELI passed inflation on to its fixed fees three weeks ago, which suggests some comfort with the competitive environment. Amazon remains a concern to us, having renewed its promotional period for six months (link), but it is a smaller player — on a net basis, we believe competition has improved."

For an analyst ratings summary and ratings history on MercadoLibre click here. For more ratings news on MercadoLibre click here.

Shares of MercadoLibre closed at $2018.18 yesterday.

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