Reports from renowned firms are still confident in their long-term outlook and even confirmed their buy or overweight suggestion.
The leading e-commerce company published its quarterly report, with results that did not meet market expectations. Mercado Libre shares collapsed 16.1% this Thursday on Wall Street and, in just one day, lost US$18 billion of stock market value. Despite this, Several reports circulating in the city show that they are still betting on the regional trade giant.
Morgan Stanleyone of the main banks in the world, assured that, despite the sharp fall,operational indicators related to GMV (gross merchandise volume), overdue accounts and active users continue to progress favorably. “Since MELI’s investments come from a position of strengthwe maintain our overweight recommendation,” revealed the Morgan Stanley research team.
For its part, from the bank HSBC highlighted their analysis of the company: “Given the combination of below-expected results in the third quarter and the current economic environment, we have adjusted our estimates. However, “We increase the price target to $2,250 (from $2,100), reflecting a more optimistic outlook for the long term.”.
For this banking entity, “MercadoLibre’s strategy continues to position it favorably to capture a greater market share in Latin America” and confirmed his “buy” recommendation for MELI shares.
“We believe that it may take some time for the size of logistics investments and credit mix dynamics to be better reflected in consensus estimateswhich adds to a series of noisy numbers (for example, the devaluation of the Argentine peso) that are probably frustrating investors at the moment,” the Barclays report said.
And they added: “It is important to keep an overview. MELI is the market leader in e-commerce in Brazil (and probably in much of Latin America, in our opinion), with a growing moat thanks to its logistics and a growing profit pool from advertising. On the credit/fintech side, adoption of its suite of services remains as impressive as its growing offering, and steps to advance the credit market, reducing overall portfolio risk, are likely positive in the long term.”
MELI’s balance sheet: what were the weak points
The results of Marcos Galperin’s company did not meet expectations because the logistics and credit costs, They put a counterweight to the growth of their income.
In parallel, the leading electronic commerce company in Argentina and Latin America registered a net profit of US$397 million in the July – September period, while analysts surveyed by LSEG expected a profit of US$542 million.
The company, which operates in about 20 countries and manages the fintech Mercado Pago, reported US$5.3 billion in net incomea year-on-year increase of 35% and in line with estimates.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
