BofA maintains Buy rating on MercadoLibre with $3,000 price target, despite expected shipping impacts.
From Yahoo Finance: 2025-06-23 11:34:00
BofA Securities maintains a Buy rating on MercadoLibre (MELI) with a $3,000 price target, citing strong positioning despite expected short-term impacts from changes to the shipping model in Brazil.
Analysts estimate that 20% of MercadoLibre’s GMV in Brazil comes from orders priced between R$19 and R$79, tied to slower shipping options. BofA projects a potential $350 million hit in shipping revenue as the company adjusts its free shipping policies.
BofA suggests a 30% improvement in delivery density could offset costs, along with stronger earnings in Argentina or increased advertising penetration. The shift in shipping strategy aligns with efforts to optimize fulfillment and drive consumer engagement in new categories.
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Overall, MercadoLibre’s long-term strategy appears reinforced by improved fulfillment optimization and increased consumer engagement across new categories. The company’s recent shift in shipping strategy aligns with broader efforts to drive efficiency and enhance customer experience.
Read more: BofA Reaffirms Buy on MercadoLibre (MELI), Keeps $3,000 Target