Jefferies Downgrades MercadoLibre (MELI) to ‘Hold’, Hikes Price Target to $2,800

On June 5, Jefferies analysts downgraded MercadoLibre, Inc. (NASDAQ:MELI) to a ‘Hold’ from a ‘Buy’. Amid the downgrade, the analysts also increased the stock’s price target to $2,800 from $2,450. The adjustments are in response to what the analysts cite as improved profitability and cash flow prospects for 2029.

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According to the analysts, MercadoLibre has had an impressive 2025, going by the 50% plus gain year-to-date. Nevertheless, the analysts remain cautious after the significant gain, prompting the significant adjustment. The decision to increase the price target reflects the company’s robust performance, with the analysts also reassessing the company’s total addressable market in light of recent achievements.

Similarly, the analysts pointed out MercadoLibre’s strength in various segments, including commerce acquiring, credit, and advertising. Therefore, they regard the stock as a high-quality, long-term investment with numerous growth opportunities.

MercadoLibre delivered first-quarter 2025 results that topped consensus estimates on earnings and revenues. The company achieved significant gains in Argentina as commerce growth forecasts surpassed expectations. The company also registered strong gross merchandise volume growth in Brazil and Argentina and an expansion in the fintech sector.

MercadoLibre is a Latin American company that operates an e-commerce platform and fintech ecosystem. It provides online buying, selling, advertising, and payment solutions, offering a wide range of products from millions of sellers, including small businesses and major brands.

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Disclosure: None.