MercadoLibre Inc

MELI: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$4,919.00	Pjz	Zjvpxbdh

MercadoLibre: We Expect Limited Valuation Impact From Milei Election Win for Marketplace Operator

Sean Dunlop

Nov 20, 2023

We expect limited valuation impact from the election of libertarian president Javier Milei in Argentina for wide-moat MercadoLibre, with dollarization striking us as unlikely and with currency weakness already impacting our $1,330 fair value estimate through foreign exchange losses and a higher risk premium for the firm's Argentine operations. While Argentine markets are closed Nov. 20, U.S.-listed ETF ARGT is up 11%-12% on the news as traders digest results. MercadoLibre shares are up by a smaller amount (1%-2%) but have rallied by more than 20% in the election run-up over the past three months and look slightly overvalued.

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