UPDATE: Morgan Stanley Reiterates On Mercadolibre As Estimates Remain Unchanged

In a report published Monday, Morgan Stanley analyst Michel Morin reiterated an Underweight rating on Mercadolibre (NASDAQ: MELI), but removed the $64.00 price target.

In the report, Morgan Stanley noted, “The Company's decision to use the SICAD2 FX rate to translate results from Venezuela is in line with our expectations. As such, our estimates remain unchanged, at the low-end of consensus. Our 2014e EPS of $2.89 (ex-items) compares to consensus of $3.44, and we suspect that consensus projections do not yet incorporate the impact on revenue and contribution profit from such a devaluation in Venezuela, currently MELI's highest-margin and fastest-growing in nominal local FX terms. Venezuela generated 24% of MELI's total contribution profit in 2013, and we project this will decline to 3-4% by 2015.”

Mercadolibre closed on Friday at $84.99.