Morgan Stanley analyst Franco Abelardo lowered his estimates for MercadoLibre following weaker than expected Q1 results and to account for his updated macro forecasts and a more negative outlook for profitability and cash flow generation in both its marketplace and payments businesses. Breaking with consensus, Abelardo believes MercadoLibre's margins should remain "low for long," as he sees no easy solution for the logistics/distribution challenges in Brazil. Abelardo cut his price target on MercadoLibre shares to $260 from $330 and maintains an Underweight rating on the stock.