Citi Lowers MercadoLibre (MELI) PT to $2,850, Maintains a Buy Rating

MercadoLibre Inc. (NASDAQ:MELI) is one of the best growth stocks to buy for the next 2 years. On August 18, Citi lowered the firm’s price target on MercadoLibre to $2,850 from $2,900, while keeping a Buy rating on the shares. Before this announcement, the company also announced its Q2 2205 earnings report, which demonstrated record-breaking growth in both its commerce and fintech segments.

The company’s revenue increased by over 30% year-on-year, and it achieved a record income from operations of $825 million. This growth was supported by a strategic decision to lower the free shipping threshold in Brazil, which successfully attracted new users, boosted engagement, and accelerated Gross Merchandise Volume/GMV growth.

MercadoLibre’s advertising business demonstrated significant momentum, with revenue growing by 38% year-on-year. The company’s fintech arm, Mercado Pago, also saw robust performance. Its monthly active users reached 68 million, and the credit portfolio surpassed $9.3 billion, a remarkable 91% year-on-year increase.

MercadoLibre Inc. (NASDAQ:MELI) operates online commerce platforms in Brazil, Mexico, Argentina, and internationally. The company operates an online commerce platform called Mercado Libre Marketplace and a financial technology solution platform called Mercado Pago.

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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.