MercadoLibre Stock: Next Stop, $230?

Shares of MercadoLibre (NASDAQ: MELI) hit another all-time high on Tuesday, and one Wall Street pro thinks it's time to cash out of one of this year's hottest stocks. Citi analyst Paola Mello is downgrading shares of the leading Latin American online marketplace operator, lowering her rating on the stock from neutral to sell.

Mello feels that competition will intensify in Brazil, Mexico, and Chile as MercadoLibre faces off against brick-and-mortar chains that are putting some serious muscle behind their rival marketplace platforms. Free shipping promotions may have helped MercadoLibre deliver stellar top-line growth in recent quarters, but Mello feels that the stock's gains just aren't sustainable. She is slashing her price target from $260 to $230.

Image source: MercadoLibre.

Source: Fool.com