E-commerce firm BigCommerce Holdings (BIGC) has partnered with Argentina-based Mercadolibre (MELI) to enable its customers to sell across Latin America through Mercadolibre’s marketplace. BigCommerce’s shares closed 7% higher on Tuesday, while Mercadolibre’s shares gained 3% and closed at $1,542.15.
Texas-based BigCommerce is a software-as-a-service (SaaS) platform that offers search engine optimization, hosting, online store creation, and security and marketing for small and medium-sized enterprises. Mercadolibre operates online marketplaces for auctions and E-commerce in 18 nations. (See BigCommerce stock chart on TipRanks)
Following the deal, BigCommerce merchants can use BigCommerce Channel Manager to find Mercadolibre and seek approval to sell in Latin America. (See Mercadolibre stock chart on TipRanks)
The Director of Cross Border Trade for Mercadolibre LATAM (Mexico, Brazil, Argentina, Chile, Colombia), Jose Luis Hervás Fernández, said, “As E-commerce continues to expand in Latin America, choosing BigCommerce as our first major platform partner is important for our long-term strategy and gives store owners access to this fast-growing market.”
The Chief Commercial Officer at BigCommerce, Russell Klein, said, “Between shipping challenges, currency conversion and language barriers, cross-border E-commerce can be incredibly challenging for retailers to navigate, especially small and mid-sized merchants, to capitalize on. Latin America represents a huge untapped market for U.S. merchants and BigCommerce’s partnership with Mercadolibre removes these barriers, opening the door to an expansive opportunity for them to reach millions of consumers to sell to.”
After the announcement of the partnership, William Blair analyst Matthew Pfau reiterated a Hold rating on BigCommerce. The analyst expects the company to continue adding partners, and views adding selling channels and fulfillment options as two key areas.
Overall, the stock has a Moderate Buy consensus based on 4 Buys and 8 Holds. The average BigCommerce Holdings price target of $64.44 implies a 3% downside potential. The company’s shares have gained 13.8% year-to-date.
On July 14, Morgan Stanley analyst Andrew R. Ruben maintained a Buy rating on Mercadolibre with a price target of $2,260 (46.6% upside potential). The analyst said, “Q2 industry data and app usage trends indicate that MELI can grow online sales above the pre-COVID rate despite difficult comparisons.”
Overall, the stock has a Strong Buy consensus based on 8 Buys. The average Mercadolibre price target of $1,831.75 implies an 18.8% upside potential. The company’s shares have gained 51.4% over the past year.
According to TipRanks’ Smart Score rating system, Mercadolibre scores a “Perfect 10,” suggesting that the stock is likely to outperform market averages.