Benchmark Maintains Buy Rating for MercadoLibre (MELI)

MercadoLibre, Inc. (NASDAQ:MELI) is one of the 10 Unrivaled Stocks of the Next 3 Years. On September 10, Benchmark analyst Fawne Jiang maintained a Buy rating on MercadoLibre, Inc. (NASDAQ:MELI) with a price target of $2,875.

The research note by the analyst focused on MercadoLibre, Inc.’s (NASDAQ:MELI) recent decision to lower the free shipping threshold in Brazil. This decision has caught the attention of investors regarding both strategic implications and financial impacts.

Benchmark Maintains Buy Rating for MercadoLibre (MELI)

Benchmark noted that this move is expected to increase near-term costs and create some uncertainty in the market. However, the firm agrees with MercadoLibre, Inc. (NASDAQ:MELI) that Brazil is ready for deeper online penetration.

The research note also mentioned that Benchmark’s recent meeting with MercadoLibre, Inc.’s (NASDAQ:MELI) management reinforced the firm’s belief that collective actions by major companies will speed up the growth of online shopping in the region.

Benchmark believes that even though lowering the free shipping threshold could bring higher costs at first, the growth of the overall market will help leading players like MercadoLibre, Inc. (NASDAQ:MELI) in the long run.

MercadoLibre, Inc. (NASDAQ:MELI) is the leading e-commerce and financial technology company in Latin America with a presence in 18 countries.

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Disclosure: None. This article is originally published at Insider Monkey.