Bofa Securities reiterated its purchase note on Mercadolibre (Nasdaq: Meli) on June 6, holding stable with a price target of $ 3,000. The company sees the company as well positioned despite the short -term impacts expected from recent changes to its shipping model in Brazil.
Analysts estimate that around 20% of the Mercadolibre GMV in Brazil comes from orders at the price between 19 R and 79 R $, a segment linked to slower shipping options such as the day of delivery of MELI and the exclusion of cross -border or grocery purchases. While the company changes its free delivery policies, Bofa projects a net of around $ 350 million in shipping income.
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However, they maintain that an improvement of 30% of the delivery density could help balance the cost. Additional support could come from stronger income in Argentina or even a bump at 1% of advertising penetration.
The time for change of shipping strategy, according to the Bofa, reflects a wider thrust to optimize treatment. Meanwhile, the increase in consumer engagement in new categories and a more targeted advertisement is considered to strengthen the long -term plan. Last month, we shared a detail Haussier thesis On Meli’s stock too.
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Read then: The best and the worst dow stocks for the next 12 months And 10 unstoppable actions that could double your money.
Disclosure: None.
