Cantor Fitzgerald lowers MercadoLibre price target on margin concerns
#MercadoLibre #Cantor Fitzgerald #Price Target #Margin Concerns #MELI Stock #EBIT #GMV Growth #Investment Grade
📌 Key Takeaways
- Cantor Fitzgerald lowered MercadoLibre price target to $2,400 from $2,750
- MercadoLibre reported Q4 revenue and EBIT above Street estimates
- Company's revenue reached $28.89 billion with 39% YoY growth
- Strategic investments keeping margins volatile in near term
- Moody's upgraded MercadoLibre to investment grade
📖 Full Retelling
Cantor Fitzgerald lowered its price target on MercadoLibre (NASDAQ:MELI) stock to $2,400 from $2,750 while maintaining an Overweight rating on February 25, 2026, citing margin pressures despite the company reporting fourth-quarter results with revenue and EBIT above Street estimates. The Latin American e-commerce and fintech giant demonstrated impressive financial performance with revenue reaching $28.89 billion over the last twelve months, reflecting 39% year-over-year growth. The company's total gross merchandise volume (GMV) growth of 37% year-over-year excluding foreign exchange came in 5 percentage points above Street expectations, driven by acceleration in Brazil's GMV and a 40% growth in acquiring TPV on the fintech side. MercadoLibre's credit portfolio growth particularly accelerated to 90% year-over-year, showcasing strong performance in its financial services segment. However, the firm's fourth-quarter EBIT margin of 10.1% was weighed down by approximately 5 to 6 percentage points of investments in strategic initiatives including marketing, credit cards, and logistics, which Cantor Fitzgerald believes will keep margins volatile in the near term. Despite these concerns, Cantor Fitzgerald reiterated its bullish stance on MercadoLibre's fundamental outlook, noting that the company has several tailwinds on both its eCommerce and fintech businesses that should continue to deliver strong top-line growth in 2026.
🏷️ Themes
Financial Performance, Market Analysis, Corporate Strategy
📚 Related People & Topics
Mercado Libre
Argentine e-commerce company
MercadoLibre, Inc. (Spanish pronunciation: [meɾˈkaðo ˈliβɾe]), known as Mercado Livre in Brazil (Brazilian Portuguese pronunciation: [meʁˈkadu ˈlivɾi]), literally meaning "free market" in both languages, is a company of Argentine origin and incorporated in Delaware in the United States that operates...
Cantor Fitzgerald
American financial services company
Cantor Fitzgerald, L.P. is an American financial services firm that was founded in 1945. Cantor Fitzgerald's 1,600 employees work in more than 30 locations, including financial centers in the Americas, Europe, Asia-Pacific, and the Middle East. Together with its affiliates, Cantor Fitzgerald operate...
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try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Nvidia, Salesforce earnings loom large - what’s moving markets Gold prices rebound on tariff jitters; silver, platinum and copper rally Nvidia set to report strong results and guidance, analysts say U.S. stock futures drift higher; Nvidia earnings to drive direction (South Africa Philippines Nigeria) Cantor Fitzgerald lowers MercadoLibre price target on margin concerns By Investing.com Analyst Ratings Published 02/25/2026, 07:51 AM Cantor Fitzgerald lowers MercadoLibre price target on margin concerns 0 MELI 3.12% Investing.com - Cantor Fitzgerald lowered its price target on MercadoLibre stock (NASDAQ:MELI) to $2,400 from $2,750 while maintaining an Overweight rating. The firm noted that MercadoLibre reported fourth-quarter results with revenue and EBIT above Street estimates by 3% and 2%, respectively, despite heightened buyside fears into the print. The company’s revenue reached $28.89 billion over the last twelve months, reflecting impressive growth of 39% year-over-year. Total GMV growth of 37% year-over-year excluding foreign exchange came in 5 percentage points above Street expectations, driven by further acceleration in Brazil GMV. On the fintech side, acquiring TPV grew 40% year-over-year excluding foreign exchange while credit portfolio growth accelerated to 90% year-over-year. Fourth-quarter EBIT margin of 10.1% was weighed by approximately 5 to 6 percentage points of investments in strategic initiatives including marketing, credit cards, and logistics. Looking into 2026, MercadoLibre has several tailwinds on both the eCommerce and fintech businesses that should continue to deliver strong top-line growth. Strategic growth investments could keep margins volatile in the near term. Cantor Fitzgerald said its bullish stance on MercadoLibre’s fundamental outlook remains unchanged following fourth-quarter results. In other recent news, MercadoLibre reported significant financial achievements, with its gros...
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