MercadoLibre (MELI) shares have spiked this morning following Q1 results and an upgrade of the shares by Susquehanna Financial analyst Marianne Wolk to Positive from Neutral.
Wolk says the upgrade of the Latin American e-commerce company reflects the combination of a 17% pullback in the stock over the past two weeks and a more than 10% increase in her EPS forecast. Wolk says Q1 results “surpassed expectations as strong margins enhanced in-line revenue.”
She notes that long term, the company is “a beneficiary of strong secular growth trends” in Latin American e-commerce. “With 9.1 million active buyers in 2009, it sees great growth potential from the broader Internet population in the regions, estimates at 200 million Internet users,” she writes.
MELI this morning is up $2.56, or 5.7%, to $47.35.
No comments:
Post a Comment