Analyst Says Buy the Dip on This Argentinian Stock

J.P. Morgan Securities set a lofty price target for MELI stock

Aug 13, 2019 at 9:01 AM
facebook X logo linkedin


J.P. Morgan Securities upgraded Mercado Libre, Inc. (NASDAQ:MELI) to "overweight" from "neutral," and lifted its price target to $750 from $563 -- a 20% premium to last night's close at $623.65 -- saying the Argentinian online auction name has shown strength in an underpenetrated e-commerce area. The brokerage firm also cited an attractive entry point after MELI stock sold off yesterday on Argentina's shocking primary election results.

More specifically, MELI shares fell 9.6%, their biggest one-day drop since Dec. 24. However, the stock found support at its 80-day moving average -- a trendline that helped contain a pullback from earlier this month, and a subsequent bounce from here helped catapult Mercado Libre to a record high of $698.98 last Friday, Aug. 9. Today, the equity is up 2.2% in electronic trading.

There's room for more bull notes to come through on a stock that's more than doubled on a year-to-date basis. Prior to today, six of 12 brokerages maintained a tepid "hold" rating on MELI. Plus, the average 12-month price target of $662.80 represents expected upside of just 6.3% to last night's close.

A round of short covering could fuel a bigger bounce for MELI shares, too. Short interest jumped 11.7% in the latest reporting period to 1.88 million shares. This accounts for a healthy 4.6% of the stock's available float, and would take almost four days to cover, at the equity's average pace of trading.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI