On May 19, Citi analyst Joao Soares reiterated his Buy rating on MercadoLibre Inc. (NASDAQ:MELI) with an unchanged price target of $2,450. The analyst primarily discussed the recent regulatory issues in Brazil, its largest market by revenue, and how MercadoLibre is strong enough to weather these issues. Recently, Brazil’s National Telecommunications Agency (Anatel) has requested the court to block the websites of Amazon.com Inc. (NASDAQ:AMZN) and MercadoLibre. They have argued that both platforms have been unable to stop pirated, non-licensed mobile phone sales.

A person browsing the world's largest e-commerce marketplaces for the perfect product.

The analyst highlighted that MercadoLibre has been making robust efforts to comply with domestic regulations and cooperating with Anatel to prevent such illegal sales. While an unfavourable decision could impact the company's revenues and millions of customers, its measures indicate its capacity for resolving the issues and potential for a favourable solution. He thus maintains his positive view on the company’s long-term growth outlook.

In mid-last week, DBS analyst Nashrullah Putra Sulaeman reaffirmed his Buy rating on the stock, basing his bullish opinion on continued growth in e-commerce and its focus on growing fintech and logistics business.

MercadoLibre Inc. (NASDAQ:MELI) is an Argentine company known as the leading provider of e-commerce and financial technology in Latin America. It has operations in 18 countries.

While we acknowledge the potential of MELI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MELI and that has 100x upside potential, check out our report about the cheapest AI stock.

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