JPMorgan Upgrades MercadoLibre (MELI) to Overweight Amid Strong Brazil Growth

MercadoLibre, Inc. (NASDAQ:MELI) ranks among billionaire Stanley Druckenmiller’s 10 best stock picks. JPMorgan raised MercadoLibre, Inc. (NASDAQ:MELI) from Neutral to Overweight on February 12, given indications of softening competition, lower risk earnings projections, and ongoing strong growth in Brazil. The firm claimed that since Shopee has increased its take rates to levels comparable to MercadoLibre’s on higher-end items, the pressures from competition began to diminish.

JPMorgan stated that it no longer anticipates any major downside to market projections for 2026 and 2027 financial results. Estimates have been drastically reduced since mid-2025, when worries about competition grew when Shopee reduced its free delivery criteria.

The firm also stated that it projects continuing growth in Brazil, which is MercadoLibre’s largest market. It predicts that the country’s GMV will increase by more than 30% in local currency during the fourth quarter, aided by clearer comparisons and a spike in app usage. JPMorgan now anticipates revenue, operating profit, and earnings to rise by 35%, 34%, and 41% in 2026, respectively, owing to currency appreciation in Brazil and Mexico, margin improvement, and rapid credit growth.

MercadoLibre, Inc. (NASDAQ:MELI) provides an online commerce platform and related services. It works in four geographical segments: Brazil, Argentina, Mexico, and Other Countries.

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