BofA Maintains MELI Target Despite Shipping Adjustments in Brazil

MercadoLibre, Inc. (NASDAQ:MELI) is one of billionaire Stan Druckenmiller’s top stock picks with huge upside potential. Analysts at BofA Securities reiterated their Buy rating on MercadoLibre, Inc. (NASDAQ:MELI) and maintained their price target of $3,000 on June 6. The analysts emphasized the possible effects of changing the company’s shipping regulations in Brazil.

An estimated 20% of MercadoLibre’s gross merchandise volume in Brazil, according to the analysts, falls between R$19 and R$79. This range excludes supermarket and cross-border transactions and is linked to slower shipping options like MELI Delivery Day.

BofA Maintains MELI Target Despite Shipping Adjustments in Brazil

However, BofA Securities states that a 30% increase in shipment density might balance the cost of the adjustments. Additionally, the firm points at how a single percentage point improvement in advertising penetration or greater earnings power in Argentina could justify the investment.

MercadoLibre, Inc. (NASDAQ:MELI), based in Buenos Aires, Argentina, is a prominent Latin American e-commerce technology company. Established in 1999, the main platforms of the company, MercadoLibre.com and MercadoPago.com, provide a variety of solutions for individuals and businesses engaged in online buying, selling, advertising, and payment operations.

While we acknowledge the potential of MELI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

Read More: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds

Disclosure: None.