Mercadolibre’s “Underweight” Rating Reaffirmed at Morgan Stanley (MELI)
Mercadolibre (NASDAQ:MELI)‘s stock had its “underweight” rating restated by equities researchers at Morgan Stanley in a research report issued on Monday. They currently have a $64.00 price objective on the stock. Morgan Stanley’s price objective would indicate a potential downside of 24.70% from the stock’s previous close.
The analysts wrote, “The Company’s decision to use the SICAD2 FX rate to translate results from Venezuela is in line with our expectations. As such, our estimates remain unchanged, at the low-end of consensus. Our 2014e EPS of $2.89 (ex-items) compares to consensus of $3.44, and we suspect that consensus projections do not yet incorporate the impact on revenue and contribution profit from such a devaluation in Venezuela, currently MELI’s highest-margin and fastest-growing in nominal local FX terms. Venezuela generated 24% of MELI’s total contribution profit in 2013, and we project this will decline to 3-4% by 2015.”
Several other analysts have also recently commented on the stock. Analysts at Piper Jaffray cut their price target on shares of Mercadolibre from $132.00 to $122.00 in a research note on Monday. Separately, analysts at Credit Suisse cut their price target on shares of Mercadolibre from $93.00 to $77.00 in a research note on Monday. They now have a “neutral” rating on the stock. Finally, analysts at TheStreet downgraded shares of Mercadolibre from a “buy” rating to a “hold” rating in a research note on Tuesday, May 13th. Four research analysts have rated the stock with a sell rating, five have given a hold rating and one has assigned a buy rating to the company. Mercadolibre currently has an average rating of “Hold” and an average target price of $98.61.
Mercadolibre (NASDAQ:MELI) traded down 1.16% during mid-day trading on Monday, hitting $84.005. The stock had a trading volume of 894,788 shares. Mercadolibre has a 52 week low of $80.44 and a 52 week high of $145.99. The stock’s 50-day moving average is $87.92 and its 200-day moving average is $99.73. The company has a market cap of $3.709 billion and a P/E ratio of 28.84.
Mercadolibre (NASDAQ:MELI) last announced its earnings results on Thursday, May 8th. The company reported $0.69 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.57 by $0.12. The company had revenue of $115.40 million for the quarter, compared to the consensus estimate of $109.37 million. During the same quarter last year, the company posted $0.53 earnings per share. Mercadolibre’s revenue was up 12.4% compared to the same quarter last year. On average, analysts predict that Mercadolibre will post $2.87 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Tuesday, July 15th. Shareholders of record on Monday, June 30th will be paid a dividend of $0.166 per share. This represents a $0.66 annualized dividend and a dividend yield of 0.78%.
MercadoLibre Inc is an Argentina-based company active in the e-commerce industy. The Company hosts the online commerce platform in Latin America, focused on enabling e-commerce and its related services, and is located at www.
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