Since the beginning of the year, the price has been lateralizing and cannot far exceed the range of US$1,000. Recently, a team of analysts from JP Morgan explained what is happening.
Free Market (MELI) collapses on Wall Street this Monday, July 10, after receiving two bad data that impact on the share price. One of them and who met this morning responds to Bank of Americawhich adds to the bad prognosis of another major US bank such as JPMorgan.
Bank of America analyst Robert Ford downgraded Mercado Libre $MELI from a buy to neutral and adjusted his price target from $1,680 to $1,350 per share. In this way, the shares of Marcos Galperín’s company collapsed on the New York stock market by 7%.
Since the beginning of the year, the price has been lateralizing and cannot far exceed the range of US$1,000. Recently, a team of analysts from JP Morgan explained what is happening.
Specifically, the experts, led by Marcelo Santos, indicated that the risk of a stronger devaluation of the Argentine peso represents “a key obstacle that prevents the entry of marginal investors”, despite the fact that less than 25% of the net invoicing of the company came from Argentina during the first quarter of the year.
However, the experts reaffirmed a target price for the ADR at US$1,700, a target price that incorporates devaluation risk. The share of Mercado Libre on Wall Street has been rising 26% so far this year and so far this month it has lost almost 10%.
Source: Ambito
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