MercadoLibre (NASDAQ:MELI) is well-known as one of the biggest mobile payments platforms around. Focusing its business in and around South and Central America, it offers easy ways to make payments and even buy cryptocurrencies. Now, Morgan Stanley stepped in with some exciting new possible directions for MercadoLibre, and investors gave the stock a 4% bump in Friday’s trading in response.
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Morgan Stanley believes that, if all goes well, MercadoLibre could see as much as a 40% gain. According to the Morgan Stanley research note, much of MercadoLibre’s operations are undervalued. MercadoLibre isn’t strictly a fintech operation, Morgan Stanley noted. Rather, it’s got several different potential revenue streams working in its favor, from advertising to logistics. A few minor tweaks, like a “…fulfillment fee ramp-up,” could do even more for MercadoLibre. A potential bull case, in fact, gets MELI stock all the way up to $2,150 per share.
MercadoLibre is also actively taking advantage of what potential revenue streams it can. Earlier today, it opened up cryptocurrency trading in Chile, which is the third such country to get access to crypto via MercadoLibre’s auspices. With 20 million people in Chile and one of the most stable governments in the region to its credit, it’s generally considered a coup to expand into Chile. Better yet, Morgan Stanley isn’t the only one with an eye on MercadoLibre. BTIG analysts recently kept their Buy rating in place and set a $1,400 per share price target as well.
Overall, analyst consensus unanimously calls MercadoLibre stock a Buy, with nine Buy recommendations. Better yet, the stock also comes with 15.83% upside potential thanks to its average price target of $1,526.67 per share.
