Jefferies analyst John Colantuoni initiated coverage of MercadoLibre with a Hold rating and $700 price target. The analyst believes a secular shift to e-commerce and growing adoption of digital payments in Latin America will drive ~35% annual revenue growth for the company through 2022. However, his "constructive" sales outlook is balanced by headwinds to profit from investments MercadoLibre is making in logistics as well as competition in Brazil. As a result, Street forecasts for a recovery to mid-single-digit margins by 2021 "are too optimistic," Colantuoni tells investors in a research note.