BofA raised the firm’s price target on MercadoLibre (MELI) to $2,500 from $2,250 and keeps a Buy rating on the shares. Following what the firm believes to be “extensive testing,” MercadoLibre’s Meli+ introduced a two-tier loyalty program in Brazil, notes the analyst, who perceives enhancements as capable of materially widening appeal and driving greater marketplace frequency. Noting that the firm’s senior e-commerce analyst estimates that Amazon’s (AMZN) Prime subscribers spend about 2.6-times more than non-Prime users, the firm is raising its MercadoLibre estimates to reflect GMV and credit use.
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