Piper Jaffray Overweight on MercadoLibre

Piper Jaffray is out with a research report on MercadoLibre, Inc.

and it has an Overweight rating and a $100 price target on shares. In a note to clients, Piper Jaffray writes, "We remain confident in MercadoLibre's fundamentals, and our 27% GMV growth estimate for December, which translates into a 33% increase in local currency revenue growth assuming a take rate of 6.6%. However, given recent FX changes, the optics of the December quarter could be below plan. In our most recent MercadoLibre note, (9/23) we noted that Street estimates likely included roughly a 4.7% tailwind from currency in 4th quarter estimates. However, given the recent depreciation of the Real and other Latin American currencies, FX is on track to cause a 5.7% headwind to revenue in December if current exchange rates were carried forward. This would bring Street estimates for USD revenue from +39% y/y to ~26% y/y. Currently, we are not lowering our fourth quarter numbers, as we wait to see how currency markets develop." Shares of MELI gained $2.01 yesterday to close at $58.71.