MercadoLibre Stock Just Doubled -- but 1 Analyst Thinks It Will Come Crashing Down
Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more. But do these analysts even know what they're talking about? Today, we're taking one high-profile Wall Street pick and putting it under the microscope...
Investors cheered the 115% rise in stock price at MercadoLibre (NASDAQ: MELI) over the past year -- but now they have reason to fear. According to a new report just out of Citigroup, MercadoLibre shares -- which approached $330 a share last night (and were upgraded by Piper Jaffray last week) -- is primed to fall $100 in price over the next 12 months.
Downgrading MercadoLibre stock to sell and assigning a new $230 price target, Citigroup warns in a note summarized on TheFly.com that "free shipping ... helped the company sustain high growth rates in the past two quarters." But "competition should intensify in key markets like Brazil, Mexico and Chile, as bricks-and-mortar retailers like Via Varejo, Magazine Luiza, and Falabella start to launch their own marketplace platforms."
Source: Fool.com
Mercadolibre Inc Stock
The stock is an absolute favorite of our community with 23 Buy predictions and no Sell predictions.
With a target price of 1769 € there is a slightly positive potential of 19.74% for Mercadolibre Inc compared to the current price of 1477.4 €.
