Stifel analyst Scott Devitt downgraded MercadoLibre to Hold from Buy and cut his price target for the shares to $405 from $425. The injunction that protected MercadoLibre from Correios' shipping fee increase was lifted by the Sao Paulo Regional Federal Court until further deliberation by the Brazil Federal Court System, Devitt tells investors in a research note. While the decision could be reversed following a formal judicial process, the near-term financial impact for MercadoLibre is negative, the analyst contends. He forecasts MercadoLibre's shipping subsidy cost will increase by approximately $53M in 2018. Devitt believes the potential for rising shipping costs and growing competition in Brazil create a higher level of uncertainty with respect to MercadoLibre shares.