Please ensure Javascript is enabled for purposes of website accessibility

Will MercadoLibre Stock Hit $1,000?

By Joe Tenebruso - May 21, 2020 at 12:59PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This analyst says "yes."

Even after climbing more than 40% so far this year, MercadoLibre's (MELI -3.00%) shares will continue to reward investors in the months ahead.

So says J.P. Morgan analyst Marcelo Santos. On Wednesday, Santos reiterated an "overweight" rating on MercadoLibre's stock and raised his target price from $800 to $1,000. That implies potential upside of 22% for investors, based upon MercadoLibre's current share price of $820.

A rising bar graph.

MercadoLibre's stock could deliver even more gains to shareholders in the coming year, according to J.P. Morgan analyst Marcelo Santos. Image source: Getty Images.

Santos expects e-commerce growth to accelerate as a result of the coronavirus pandemic. With so many people stuck at home due to social distancing directives, more consumers are shopping online than ever before. Many of these new online buyers will continue to shop on e-commerce marketplaces -- such as those operated by MercadoLibre -- even after the COVID-19 crisis subsides.

Fears of virus transmission from handling cash could also lead to increased adoption of digital payment technology. MercadoLibre-owned Mercado Pago, the leading online payment solution in Latin America, stands to benefit from this, as well as the long-term global trend away from cash and toward digital payments.

In turn, Santos believes MercadoLibre is set to enjoy potentially powerful short-term and long-term growth catalysts, which should help to drive its stock price higher over time.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Mercadolibre, Inc. Stock Quote
Mercadolibre, Inc.
$717.31 (-3.00%) $-22.15

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.