Morgan Stanley adjusted its outlook for MercadoLibre on March 9, 2026. The investment bank reduced its price target for the stock to $2,600 from $2,800. Analysts maintained an Overweight rating despite the reduction.
The decision follows a re-evaluation of estimates for seasonality, credit card operations, and marketing expenses. Morgan Stanley lowered its 2026 EBIT margin forecast for the company by 14%. The firm now projects 2026 EBIT at $3.55 billion.
Strategic investments are currently enhancing user experience and fostering long-term growth. These expenditures are creating short-term pressure on the company’s profitability. Morgan Stanley remains positive on the stock, citing MercadoLibre’s history of productive capital allocation.