Citi
May 14, 2026
The Point for Latin America
Daily UpdateEquitiesMacro Economic IndicatorsCommoditiesConsumer DiscretionaryUtilities
Citi Research has downgraded MercadoLibre to Neutral following weaker 1Q26 results while initiating a Buy on Cencosud. The report also highlights rising fiscal risks in Mexico and the impact of Middle East disruptions on global agriculture and GCC credit.
Key Takeaways
- 1.MercadoLibre (MELI) is downgraded to Neutral/High-Risk from Buy due to reduced visibility on margin trajectory and intense investment cycles.
- 2.Citi initiates coverage on Cencosud (CENCOSUD.SN) with a Buy rating, viewing 2026 as a transition year ahead of 2027 margin expansion.
- 3.Mexico's credit rating outlook was shifted to negative by S&P, with risks of further downgrades due to fiscal consolidation challenges.
Table of Contents
- Top Call
- Company
- Industry
- Strategy & Economics
- Global
- Key Rating and Target Price Changes
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Authors
João Pedro SoaresSofia FaluJoao Pimentel
Securities
MELICencosudENEV3.SAEQTL3.SAGAA_p.CN
Themes
Post-Pandemic Investment DurationResilience of Brazilian Real EstateGeopolitical Disruption to Supply Chains
Regions
Latin AmericaMiddle EastBrazilMexicoChile