Citi maintains Hold on MercadoLibre as fintech credit portfolio surges

Citigroup maintained its Hold rating on MercadoLibre on July 8, setting a price target of $1,950 for the Latin American e-commerce and financial technology leader. The bank’s decision follows the company’s first-quarter 2026 financial results, which highlighted sustained strength in its credit operations and no indications of portfolio deterioration.

The research firm noted that MercadoLibre’s credit performance remains solid, underpinned by significant expansion in its fintech segment. The company’s credit portfolio grew by 87 per cent year-on-year to reach $14.6 billion in the first quarter of 2026, marking the largest quarterly increase in nominal terms. This expansion reflects higher user engagement and the firm’s ability to monetise cross-selling of financial services across its ecosystem.

Data from the quarter showed that monthly active users for the fintech business climbed 29 per cent year-on-year to 83 million, adding nearly 20 million users over the past year. Growth was particularly pronounced in Brazil and Mexico, where new customers demonstrated record-high levels of retention and engagement.

Assets under management also saw substantial growth, reaching nearly $20 billion, a 77 per cent increase year-on-year. This rate of growth exceeded the pace of user acquisition, suggesting that customers are retaining more funds within the Mercado Pago platform. The company attributed this trend to deposit returns that are difficult for incumbent banks to match.

MercadoLibre operates as the leading e-commerce and financial technology provider in Latin America, with a presence in 18 countries. While the firm continues to expand its financial services footprint, analysts at Citigroup have maintained a cautious stance on the stock, balancing the strong operational metrics against broader market considerations.