The online trading site for the Latin American markets, Mercadolibre, shows an opportune technical configuration which could lead the stock towards USD 112.
The firm has a high growth potential, with an increase in sales of 96% estimated between 2013 and 2015. The company had 195 million dollars in net treasury in 2012, the financial situation is healthy. The P/E ratio of 40.7x seems very high, but it is, actually, under-valued compared to its peers (Asos PLC : 95.7x ; Yoox SPA : 78.2x).
Technically, the trend is bullish in the medium and long term. However, prices has known a consolidation upon contact with USD 125.2 and are back to the USD 105.7 short term support, corresponding to a bullish trend line as well as the 100-day moving average. These elements argue in favor of a rebound towards USD 111.9.
Thus, it seems opportune to take a long position at the current price. The main objective will be USD 112 then USD 115.8. A stop loss must be placed below the short term support.
MercadoLibre, Inc. is the leading online marketplace in Latin America. The group operates an IT platform enabling individuals and professionals to carry out their purchasing and selling transactions for goods and services. The activity is organized around 5 areas:
- operation of online trading platforms;
- online payment services: services provided through the MercadoPago platform;
- shipping services: services provided through the MercadoEnvios platform;
- development of classified ad sites;
- other: e-commerce software development, advertising services, etc.
Net sales are distributed geographically as follows: Brazil (53.8%), Argentina (23.7%), Mexico (17.7%) and other (4.8%).
MERCADOLIBRE, INC. 
