JPMorgan downgrades MercadoLibre to Neutral and cuts target to $2,100 from $2,650

JPMorgan cut MercadoLibre from Overweight to Neutral and lowered its December 2026 price target to $2,100 from $2,650. The bank pointed to intense e-commerce competition in Brazil from Shopee, lower operating profit from heavier short-term investment, and a weak first quarter. JPMorgan's 2026 EBIT margin estimate is now about 8.9%, roughly 14% below the Bloomberg consensus.

• Rating: Overweight to Neutral; target $2,650 to $2,100 (December 2026)
• JPMorgan 2026 EBIT margin estimate cut to about 8.9%, about 14% below consensus
• Bank expected Q1 2026 operating income about 24% below consensus
• Shopee's fee increase seen funding PIX-linked discounts in Brazil