Zacks Investment Research upgraded shares of Mercadolibre (NASDAQ:MELI) from a strong sell rating to a hold rating in a research note issued to investors on Tuesday.

According to Zacks, “MercadoLibre is currently benefiting from growing number of confirmed registered users. Increasing adoption rate of MercadoPago continues to aid growth in total payment volume of the company. Further, improving shipments via MercadoEnvios are major positives. All these factors are driving MercadoLibre’s top-line growth. Additionally, the company’s strong mobile wallet initiatives are accelerating the adoption rate of its Mobile Wallet. Also, its strengthening momentum across the geographies is a tailwind. Notably, the stock has outperformed the industry it belongs to over a year. However, increasing expenses related to warehousing, infrastructure transition on public cloud, free shipping subsidies and discounts on mPOS devices are hurting the company’s margin expansion. Further, rising competition from e-commerce giants poses serious threat to its market position.”

A number of other research firms have also weighed in on MELI. BidaskClub lowered Mercadolibre from a strong-buy rating to a buy rating in a research report on Tuesday, December 25th. Barclays upped their price objective on Mercadolibre from $360.00 to $370.00 and gave the stock an overweight rating in a research report on Friday, November 2nd. UBS Group initiated coverage on Mercadolibre in a research report on Tuesday, October 23rd. They set an outperform rating on the stock. ValuEngine lowered Mercadolibre from a strong-buy rating to a buy rating in a research report on Tuesday, September 11th. Finally, Credit Suisse Group cut their price objective on Mercadolibre from $420.00 to $370.00 and set an outperform rating on the stock in a research report on Tuesday, October 23rd. One investment analyst has rated the stock with a sell rating, four have given a hold rating, nine have assigned a buy rating and one has given a strong buy rating to the company’s stock. Mercadolibre currently has a consensus rating of Buy and an average target price of $377.18.

Shares of NASDAQ MELI opened at $344.95 on Tuesday. The company has a market capitalization of $15.37 billion, a price-to-earnings ratio of 136.34, a PEG ratio of 13.48 and a beta of 2.07. The company has a debt-to-equity ratio of 1.62, a quick ratio of 1.61 and a current ratio of 1.62. Mercadolibre has a 52-week low of $257.52 and a 52-week high of $417.91.

Mercadolibre (NASDAQ:MELI) last posted its quarterly earnings data on Thursday, November 1st. The company reported ($0.23) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.10) by ($0.13). Mercadolibre had a negative return on equity of 9.47% and a negative net margin of 7.04%. The company had revenue of $355.30 million for the quarter, compared to analysts’ expectations of $352.75 million. During the same period in the prior year, the company posted $0.63 EPS. The firm’s revenue was up 16.5% compared to the same quarter last year. Analysts predict that Mercadolibre will post -0.98 earnings per share for the current fiscal year.

Several hedge funds have recently modified their holdings of the stock. USS Investment Management Ltd grew its stake in shares of Mercadolibre by 25.6% during the fourth quarter. USS Investment Management Ltd now owns 49,000 shares of the company’s stock worth $14,348,000 after purchasing an additional 10,000 shares in the last quarter. Cumberland Advisors Inc. acquired a new position in shares of Mercadolibre during the fourth quarter worth $732,000. Moody National Bank Trust Division grew its stake in shares of Mercadolibre by 1.2% during the fourth quarter. Moody National Bank Trust Division now owns 5,289 shares of the company’s stock worth $1,549,000 after purchasing an additional 64 shares in the last quarter. TIAA CREF Investment Management LLC grew its stake in shares of Mercadolibre by 4.2% during the third quarter. TIAA CREF Investment Management LLC now owns 859 shares of the company’s stock worth $292,000 after purchasing an additional 35 shares in the last quarter. Finally, Csenge Advisory Group acquired a new position in shares of Mercadolibre during the third quarter worth $42,000. Hedge funds and other institutional investors own 93.11% of the company’s stock.

Mercadolibre Company Profile

MercadoLibre, Inc hosts online commerce platforms in Latin America. It offers MercadoLibre Marketplace, an automated online commerce service for businesses and individuals to list items and conduct their sales and purchases online in a fixed-price or auction-based format. The company's Marketplace platform enables commerce through online classifieds for motor vehicles, vessels, aircraft, services, and real estate; and Internet users to browse through various products that are listed on its Website and to register with MercadoLibre to list and purchase items and services.

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Analyst Recommendations for Mercadolibre (NASDAQ:MELI)

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