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.

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 as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.