MercadoLibre upgraded to Buy at BofA as cross-border threats look to be fading

BofA upgraded MercadoLibre to Buy from Neutral with a price target of $2,000, up from $1,350. Cross-border e-commerce threats “appear to be fading quickly” as political opposition to Brazil’s $50 de minimis for cross-border e-commerce escalates. Brazil’s Vice President has pledged to end duty-free cross-border e-commerce by year-end, the analyst tells investors. While Brazilian regulatory developments appear likely to slow cross-border growth, allowing MercadoLibre to establish broader, direct relationships and optimize first mile and long-haul practices, the firm continues to see “considerable vibrancy across all other areas” of MercadoLibre’s platform, the analyst added.