JPMorgan Reiterates Overweight Rating on Sea Ltd. (SE)

JPMorgan analyst Ranjan Sharma reiterated an Overweight rating and $230.00 price target on Sea Ltd. (NYSE: SE)

The analyst comments: "SE’s share price declined 10% (NASDAQ +0.7%) overnight on increased investor concerns about ecommerce margins and new market expansion by Shopee. At the more negative end of the spectrum, some investors have raised concerns of margins flat-lining over 2026. Contrary to these expectations, we believe SE’s ecommerce profitability should improve (margins can fluctuate with seasonality, though). In our view, the recent step-change in the ecommerce industry monetization (link) should allow Shopee to further enhance monetization, recycle the revenues to support growth investments, unlock ad revenues, benefit from a reduction in logistics costs, and drive higher customer engagement. This should widen Shopee’s competitive moat through better customer experience (service + costs) and ecosystem informational advantage. We remain OW on SE and see meaningful upside to 2026 consensus earnings expectations. It is difficult for us to comment on new market expansion as we are not aware of SE confirming a new market launch. From our conversations with investors, we believe investors would positively view a service expansion over a market expansion."

For an analyst ratings summary and ratings history on Sea Ltd. click here. For more ratings news on Sea Ltd. click here.

Shares of Sea Ltd. closed at $163.42 yesterday.

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