MercadoLibre (MELI) PT Lowered to $1,900 at JPMorgan

JPMorgan analyst Marcelo Santos lowered the price target on MercadoLibre (NASDAQ: MELI) to $1,900.00 (from $2,100.00) while maintaining a Neutral rating.

The analyst comments: “Incrementally, MELI is increasing investments in Brazil e-commerce with new take rate promotions (see our report) as well as regionally with higher AI usage, prompting the company to be comfortable with a 7% EBIT margin level for 2026 instead of the previously discussed 9%. These investments will likely drive stronger growth, as they did in 1Q26, prompting us to increase revenues 2026E/28E by 5%/9%, but cut margins to 7.1%/7.4%, resulting in -17%/-15% EBIT and -20%/-10% EPS cuts. We estimate the announced Brazilian take rate changes alone will generate an annualized impact of $340m on EBIT, reducing 2026E margins by 0.6pp, explaining nearly half of the cut to our EBIT. We take our Dec-26 PT to $1900, from $2100 previously.”

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