JP Morgan Raises MercadoLibre (MELI) Target Despite Rising Competition Concerns

MercadoLibre, Inc. (NASDAQ:MELI) is one of the best stocks to invest in for long-term growth. On August 7, JP Morgan analyst Marcelo Santos maintained his Neutral rating on MercadoLibre, Inc. (NASDAQ:MELI), while increasing the price target from $2600 to $2700. That is a 14.9% implied upside from the current price of $2350.

JP Morgan Raises MercadoLibre (MELI) Target Despite Rising Competition Concerns

A customer using their phone to access an online commerce platform.

The analyst updated the company’s estimates post the Q2 earnings report on August 4. MercadoLibre reported revenue of $6.79 billion, beating analysts’ estimates of $6.67 billion, and growing 33.9% year-over-year. The company’s growth can be attributed to improving momentum in the e-commerce and fintech segments.

The company’s strategy to lower the free shipping threshold in Brazil seems to be paying off.  It also expanded its logistics in Mexico, the second biggest Latin American market. MELI is gaining solid momentum in Mercado Pago, its digital payment platform, which saw 91% year-over-year growth in its credit portfolio.

Santos remains Neutral on the stock, though, citing that the Argentine e-commerce giant is entering a phase of higher competition after two years of “relatively calm markets” in Brazil. The company’s forward P/E ratio stands at a rich 49.99x. However, the implied average Wall Street upside on the stock is 22.3%.

While we acknowledge the risk and potential of MELI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MELI and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.