Cantor Fitzgerald raises MercadoLibre stock price target to $2,900 on growth outlook

Cantor Fitzgerald raised its price target on MercadoLibre (MELI) to $2,900 with an Overweight rating, naming it a "top pick for 2026" due to anticipated sustained top-line growth and an improved operating environment in Argentina, despite recent macroeconomic concerns. This bullish outlook follows MELI's mixed Q2 2025 results, which saw an EPS miss but a revenue beat, and comes amid a new challenge from Mexico's anti-trust watchdog investigating competition barriers for sellers on its platform. Benchmark also maintains a Buy rating, underscoring continued analyst confidence despite these short-term headwinds.

Analysis

MercadoLibre (MELI) has received a significant vote of confidence from Cantor Fitzgerald, which raised its price target to $2,900 and designated the stock a "top pick for 2026," citing expectations for sustained top-line growth and an improved operating environment in its key Argentinian market. This bullish sentiment is echoed by Benchmark, which maintains a Buy rating with a $2,875 target. This analyst optimism is underpinned by the company's strong fundamentals, including robust revenue growth of 35.81% and gross profit margins of 51.54%. However, this outlook is contrasted by a mixed second-quarter 2025 performance, where a 3.03% revenue beat to $6.79 billion was overshadowed by a 15.56% earnings per share miss ($10.31 actual vs. $12.21 expected). Furthermore, the company faces a new regulatory headwind, as Mexico’s anti-trust body, Cofece, has identified competition barriers on its platform, specifically concerning product visibility for sellers not using its logistics services. Despite the stock's impressive 46.69% year-to-date gain, it has underperformed the NASDAQ by 4 percentage points since the Q2 report, reflecting investor concerns over margin trajectory and macroeconomic factors.

Key Decisions for Investors

• Investors aligned with the long-term growth narrative could view the recent stock underperformance as a potential entry point, given the strong analyst conviction and sustained high revenue growth.
• It is critical to monitor the emerging regulatory risk from Mexico's anti-trust investigation, as any resulting penalties or mandated operational changes could present a material headwind for this key market.
• Pay close attention to margin trajectory in the next earnings release, as the recent EPS miss highlights a potential disconnect between strong top-line growth and bottom-line profitability that warrants scrutiny.