MercadoLibre tipped by Morgan Stanley for earnings topper
Diego Thomazini/iStock via Getty Images

Morgan Stanley reiterates an Overweight rating on MercadoLibre (NASDAQ:MELI) with a highly positive risk-reward skew seen on the e-commerce company ahead of the earnings report due out on May 4.
The firm is constructive on MELI's setup into the report, expecting the commerce/fintech operating momentum seen in Q4 to roll right into 2022. Analyst Andrew Ruben and team think consensus marks on MELI are too low. They set their earnings mark 5% higher than consensus on revenue and 17% higher on EBITDA.
"In 4Q results, MELI demonstrated the resilience of its Commerce business despite a pressured consumer spending backdrop most notably in Brazil. We see support from pan-LatAm exposure, logistics improvements, and a broad category mix â drivers which should persist for 1Q."
The long-term view on MELI is that it is an e-commerce leader in Latin America and has a strong fintech business. Morgan Stanley sees the company well positioned to capture the secular growth opportunities on both fronts.
Amazon, MercadoLibre and Sea all feature in Morgan Stanley's bullish thesis on global e-commerce.