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Wedbush Trims MercadoLibre Price Target to $2,700, Reaffirms Outperform

The call underscores confidence despite margin compression from stepped-up spending.

Overview

  • Wedbush cut its target from $2,800 to $2,700 and kept an Outperform rating, flagging competitive dynamics, demand trends, higher 2026 logistics and marketing costs, and credit risk management as key watch items.
  • MercadoLibre shares traded near $1,998 on Dec. 26, about 23% below the stock’s June peak as investors weighed tougher competition.
  • Q3 2025 net revenue rose 39% to $7.4 billion, marking a 27th straight quarter above 30% growth, while operating margin contracted to about 9.8% due to heavier investment.
  • In Brazil, a lower free‑shipping threshold fueled a 42% year‑over‑year jump in items sold and delivered the largest quarterly inflow of unique buyers, with unique buyers up 29% in Q3.
  • Fintech momentum continued as MercadoPago’s credit portfolio reached roughly $11 billion at quarter‑end, up 83% year over year, with significant payment volume generated off‑platform.