Real’s drop weakens Brazilian companies' earnings in dollars in 3Q24 By Investing.com
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 03 2024
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Source: Investing.com
Impact of Currency Depreciation: Brazilian companies faced weakened financial results in Q3 due to the depreciation of the real, with dollar-denominated revenues dropping by 2% and EBITDA decreasing by 5%, despite local currency growth showing an 11% increase in revenues and 8% in EBITDA.
Morgan Stanley's Outlook: The bank anticipates continued challenges for Brazilian firms into 2025 due to high interest rates, maintaining an "underweight" stance on Brazilian stocks while favoring sectors like energy, finance, agriculture, and digitalization.
Analyst Views on MELI
Wall Street analysts forecast MELI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MELI is 2783 USD with a low forecast of 2500 USD and a high forecast of 2950 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
10 Buy
1 Hold
0 Sell
Strong Buy
Current: 2153.750
Low
2500
Averages
2783
High
2950
Current: 2153.750
Low
2500
Averages
2783
High
2950
About MELI
MercadoLibre Inc is a Uruguay-based e-commerce business facilitator of Argentinian origins. The e-commerce products enable retail and wholesale via Internet platforms designed to provide users with a portfolio of services to facilitate commercial transactions. The Company's geographic coverage includes 18 countries of Latin America. The primary offer is an ecosystem of six integrated e-commerce services: the Mercado Libre Marketplace, the Mercado Libre Classifieds service, the Mercado Pago payments solution, the Mercado Credito financial solutions, the Mercado Envios logistic solutions including shipping, the Mercado Ads advertising platform and the Mercado Shops digital storefront solution.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
