Morgan Stanley Confident MercadoLibre (MELI) Can Comp Pre-Covid Numbers

Morgan Stanley analyst Andrew Ruben reiterated an Overweight rating and $2,260.00 price target on MercadoLibre (NASDAQ: MELI) noting that 2Q industry data and app usage trends indicate that MELI can grow online sales above the pre-Covid rate despite difficult comparisons.

The analyst stated "Still-low eCommerce penetration, improving logistics operations, and an
expanding category base are keys. Our +40% Brazil GMV growth forecast is below +92% in 1Q, but reflects steady two-year stacked growth at ~120% (geometric basis)." He went on to state "Operating strength drove positive estimate revisions YTD, but trading multiples have contracted. We see a favorable setup".

For an analyst ratings summary and ratings history on MercadoLibre click here. For more ratings news on MercadoLibre click here.

Shares of MercadoLibre closed at $1548.21 yesterday.

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