Scotiabank Rates MercadoLibre (MELI) Outperform, Highlights Peerless Moat in Payments and Commerce

MercadoLibre, Inc. (NASDAQ:MELI) ranks among the best growth stocks to buy for the next 10 years. Citing MercadoLibre, Inc. (NASDAQ:MELI)’s strong position in Latin American fintech and e-commerce, Scotiabank began covering the company on July 28 with a Sector Outperform rating and a Street-high price target of $3,500.

Scotiabank Rates MercadoLibre (MELI) Outperform, Highlights Peerless Moat in Payments and Commerce

With MercadoLibre, Inc. (NASDAQ:MELI) in a unique position to profit from the region’s continuous trends toward online retail and digital banking, Scotiabank anticipates an upside of almost 46% from current levels. It referred to the company’s dual payments and commerce ecosystem as a “peerless moat,” with over 64 million monthly financial customers and over 100 million marketplace users.

With free cash flow expected to increase at a compound annual growth rate of 23% through 2028, Scotiabank believes MercadoLibre, Inc. (NASDAQ:MELI) is outperforming its regional competitors.

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 to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MELI and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.