MELI - Morgan Stanley sees over 40% upside for MercadoLibre

2023-03-31 09:56:40 ET

MercadoLibre ( NASDAQ: MELI ) remains a top pick at Morgan Stanley, with the bank’s latest research suggesting over 40% upside for the stock.

In a new research note diving into the company, the bank’s analysts indicated that the sum of the parts across marketplace, first-party sales, advertising, logistics, and fintech capabilities are undervalued.

“Incorporating segment modeling, our earnings forecasts increase, and we see a widening gap versus consensus estimates; our PT rises to a Street-high $1,770, on DCF drivers and SOTP support,” the team wrote. “With +48% price target upside and a 2.6:1 positive risk-reward skew, OW-rated MELI remains our Top Pick.”

The team added that “a fulfillment fee ramp-up could push logistics to standalone profitability” and drive a bull case potential to $2,150. Shares of MercadoLibre ( MELI ) rose over 4% on Friday.

Read more on the company’s latest earnings results .

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