What happened Shares of MercadoLibre (NASDAQ: MELI) have gained as much as 5% today after the company received a bullish vote of confidence from Wall Street. HSBC reiterated a buy rating on the stock while increasing its price target from $1,800 to $2,100, approximately 13% upside from Friday's close. So what Analyst Ravi Jain is impressed with the Latin American e-commerce company's rise to a $100 billion market cap, and wouldn't be surprised if the stock "face[d] a near-term breather." But the analyst remains bullish on MercadoLibre's long-term prospects, particularly as it pushes deeper into fintech services. Image source: Getty Images. The path to the next $100 billion increase in market valuation may take six to seven years and assumes that the company's valuation multiples revert to one times enterprise value to gross merchandise value (EV/GMV) and six times payments revenue. The payments business justifies a higher multiple since it is growing much faster -- total payments volume (TPV) soared by 161% in the third quarter on a constant currency basis. Now what Like many e-commerce platforms, MercadoLibre has been an inadvertent beneficiary of the COVID-19 pandemic, as consumers quickly shifted to purchasing things online. Growth may decelerate as vaccine distribution ramps up and the world slowly returns to normal. "Upside risks to this timeline are stronger growth [versus] pre-COVID-19 in a post vaccine world and multiples remaining elevated for multiple years," Jain wrote in a research note to investors. "Downside risks to the timeline are execution slips, rising competition and/or regulatory hurdles." 10 stocks we like better than MercadoLibreWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and MercadoLibre wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Evan Niu, CFA has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends MercadoLibre. The Motley Fool has a disclosure policy.Source