Analysts Slash MercadoLibre Price Targets to $2,650, $2,800 and $2,400
JPMorgan cut MercadoLibre price target to $2,650 from $2,800 and Morgan Stanley trimmed its to $2,800 from $2,950, forecasting 2026 EBIT margin at 10.1% from 11.5%. Cantor Fitzgerald lowered its target to $2,400 from $2,750, after Q4 revenue and EBIT beats of 3% and 2% with 37% GMV ex-FX growth.
1. Price Target Adjustments
JPMorgan cut MercadoLibre's price target to $2,650 from $2,800 on March 3, while Morgan Stanley trimmed its target to $2,800 from $2,950 on March 2 and Cantor Fitzgerald lowered its target to $2,400 from $2,750 on February 25, with all three firms maintaining Overweight ratings.
2. Margin Outlook and Forecasts
Morgan Stanley forecasted 2026 EBIT margin at 10.1%, down from a prior 11.5% estimate, attributing the decline to increased logistics and marketing spending that will weigh on profitability despite ongoing growth investments.
3. Q4 Performance Highlights
Cantor Fitzgerald highlighted that fourth-quarter revenue and EBIT outperformed estimates by 3% and 2% respectively, driven by 37% year-over-year GMV growth excluding foreign exchange, 40% expansion in total payment volume and 90% credit portfolio growth.
4. Analyst Perspectives
All firms emphasized a constructive outlook on MercadoLibre's long-term growth potential, noting that upside may take longer to materialize due to margin pressures but reaffirming confidence in the company’s fintech and marketplace avenues.