MercadoLibre price target lowered to $340 from $376 at Piper Jaffray
Piper Jaffray analyst Michael Olson lowered his estimates for MercadoLibre ahead of the company's Q3 results on November 1 to reflect currency moves as well as a more conservative stance on timing of its return to profitability. The analyst now expects profitability to happen in Q1 of 2019 versus his prior view of Q3. MercadoLibre is in an investment phase to drive growth and the company has also been dealing with "several external impediments," Olson tells investors in a pre-earnings research note. The combination of MercadoLibre's free shipping initiatives, recent Brazil national post price increase, and Brazil truck driver's strike, Q2 was the "epicenter" of factors that could negatively impact profitability, says the analyst. Olson lowered his price target for the shares to $340 but keeps an Overweight rating on the name.