Opinions
Reza Samahin, P. Eng, CFA
MercadoLibre
MELI-Q
HOLD
Mar 20, 2025
Stock price when the opinion was issued
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We again reiterate this Latin American e-commerce company as a TOP PICK. Its investment in Brazil is growing over $4 billion this year and the company intends to hire 11,000 new workers there to keep up with demand. Recently reported earnings showed a 71% increase in profits. Cash reserves are growing, while debt is aggressively retired and shares bought back. We recommend trailing up the stop (from $1300) to $1450, looking to achieve $2000 -- upside potential of 25%. Yield 0%
(Analysts’ price target is $2007.59)Our PAST TOP PICK with MELI has triggered its stop at $1923. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 28%, when combined with our previous guidance.
"The AMZN of Latin America", without the cloud business. Largest online e-commerce and payments ecosystem in the region, active in 18 countries. Valuation's not all that bad. The fintech arm is growing faster than the e-commerce side. Shares trending higher since mid-2022. EPS growth rate forecast at 35%. One of the top EM growth stories out there. No dividend.
(Analysts’ price target is $2535.46)
Really well run. Dominates Latin America. Branching out into payments, infrastructure is good. Somewhat susceptible to movements in the USD. Not sure if he sees growth overseas, as there are already big competitors in place.