JPMorgan upgrades MercadoLibre to Overweight after yesterday's selloff
JPMorgan analyst Andre Baggio upgraded MercadoLibre to Overweight from Neutral and raised his price target for the shares to $750 from $563. The stock yesterday declined 10%, mostly on investor concerns on the political environment in Argentina, which could lead to policy discontinuity, Baggio tells investors in a research note. The analyst, however, believes MercadoLibre "has proven that demand remains healthy even during macro volatility." Further, in its core country, Brazil, the company's growth remains "impressive," Baggio tells investors in a research note. He believes MercadoLibre presents a "unique combination of leadership on e-commerce coupled with accelerating growth on FinTech." And yesterday's selloff brings an entry point, says Baggio.