Is now the time to bet big on Latin America’s tech giant? According to Benchmark analysts, it just might be.
Benchmark initiated coverage on MercadoLibre (MELI) with a Buy rating and a sky-high $2,500 price target — suggesting a juicy 23% upside from its recent trading price of around $2,037. 🚀
Let’s unpack why Wall Street is getting so bullish about the Amazon of Latin America.
Why Benchmark Is Bullish on MercadoLibre
Benchmark’s confidence is built on solid foundations:
- Massive Revenue Growth: $20.78 billion in 2024, a 37.5% year-over-year jump.
- Strong Gross Margins: An impressive 52.67%, according to InvestingPro.
- Dominant Market Share: Holds about 25% of Latin America’s online retail market.
The analysts see Latin America’s digital revolution as just getting started — and MercadoLibre is perfectly positioned to ride this wave.
“MercadoLibre is set to benefit from rising e-commerce and digital payment adoption across the region,” Benchmark stated.
And they’re not alone.
- Jefferies bumped up their MELI target to $2,450.
- Raymond James is even more bullish, setting a $2,650 price target!
Breaking Down MercadoLibre’s Growth Engines
📦 E-commerce Powerhouse
Latin America’s online shopping scene is still in its early innings. MercadoLibre has averaged a whopping 55% revenue growth over the past five years. With millions of consumers moving online, the runway for expansion remains long and exciting.
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💳 Fintech Explosion
MercadoLibre’s fintech arm, MercadoPago, is the real secret weapon:
- As more Latin Americans ditch cash for digital payments, MercadoPago is capturing huge market share.
- This growing shift adds an entirely new layer of revenue growth.
🏗️ Major Investments Fueling Expansion
To supercharge its footprint:
- MercadoLibre is pouring $5.8 billion into Brazil in 2025 — a nearly 48% increase from the previous year.
- Plans to hire 14,000 workers in Brazil and 10,000 more in Mexico by 2025.
Clearly, the company isn’t just playing defense—it’s going all-in on growth.
How Does MercadoLibre Compare to Big Tech?
While many Big Tech stocks have stumbled under global economic pressures, MercadoLibre’s story is different. Thanks to unique local market dynamics and underpenetrated sectors, it has room to grow where others don’t.
Similar to how Amazon (AMZN) revolutionized American shopping habits, MercadoLibre is doing the same in Latin America — but with e-commerce and fintech combined.
Final Thoughts: Should You Jump on MercadoLibre Now?
Benchmark isn’t pulling punches: they believe MercadoLibre is just getting started.
If you’re an investor looking for high-growth opportunities outside the U.S., MELI could be a name to seriously consider.
But what do you think? 🤔
- Will MercadoLibre hit $2,500 — or even go beyond?
- Are Latin American markets the next big gold rush for tech investors?
👉 Tell us your thoughts in the comments!
👉 Share this article with your investing community!
Data Source & Image Credits: gurufocus