Argentine Stocks In Focus: What Are Analysts Saying?

Argentina made the news throughout 2014, mainly because of its dispute with several “holdouts,” including famed funds like Elliot Management, which wouldn’t accept the exchange offer launched by the country in an attempt to restructure its debt.

Despite these disputes, there’s still plenty of value to be exploited in the South American country. Below are a few research firms’ opinions toward a couple of NYSE/NASDAQ-traded Argentine stocks.

Related Link: Elliot Management's Shareholder Letter Equities Highlights

MercadoLibre

Latin American e-commerce company MercadoLibre Inc (NASDAQ: MELI) is actually Argentine and the most recent analyst ratings imply some upside potential for this stock.

This $5.6 billion market cap company saw JP Morgan issue an Overweight rating accompanied by a $157 price target on November 17. On October 31 after reporting strong earnings, Bank of America upgraded the stock from an Underperform to a Buy, and Credit Suisse raised its price target to $134.

Related Link: Fitch Downgrades Argentina's Par Bonds Ratings

Late last year, Deutsche Bank analyst Ross Sandler said that “MELI remains one of the best ways to play the attractive growth in Latam e-commerce, both on marketplaces and huge strategic value in payments."

The stock closed Monday at $124.30.

YPF Sociedad Anonima

YPF SA (ADR) (NYSE: YPF) is one the largest NYSE-traded company in the country. This $14.6 billion market-cap integrated oil and gas company saw its stock fall about 25 percent over the past couple of months.

Analysts don’t seem particularly bullish, nor bearish, on this company. Over the past couple of months, JP Morgan maintained a Neutral accompanied by a $41 price target, while Deutsche Bank downgraded the stock from a Buy to a Hold and cut its price target from $40 to $31.

Analyst Alexander Burgansky argued that YPF’s downgrade follows “the resilient performance of its share price in the recent oil price downturn (down only 12 percent in the past month vs. a 42 percent average for the group).”

YPF closed at $24.76, down 5 percent.