JPMorgan maintains Sea Ltd stock rating, cites rising e-commerce take rates

Published 09/09/2025, 08:20
JPMorgan maintains Sea Ltd stock rating, cites rising e-commerce take rates

Investing.com - JPMorgan has reiterated its Overweight rating and $208.00 price target on Sea Ltd. (NYSE:SE), highlighting significant take-rate increases across major e-commerce platforms in ASEAN markets. The stock, which has delivered an impressive 79.61% return year-to-date, currently trades at $190.57. According to InvestingPro data, analyst targets range from $165 to $241, with the company maintaining a GREAT financial health score.

The investment bank noted that Shopee, TikTok Shop, and Lazada have all raised their Marketplace and Mall effective take rates in several ASEAN countries, with TikTok Shop implementing the most substantial increases and now leading in take-rate in many countries.

JPMorgan views these industry-wide changes as reflecting "increased focus on profitability and sustainable growth" in the ASEAN e-commerce sector, potentially allowing platforms to reinvest higher revenues into growth initiatives.

While the firm observed that Shopee appears to be discontinuing its opt-in shipping fee program in some countries and offering shipping discount vouchers to all sellers, suggesting the take-rate increases might not fully translate to margin improvements in the near term.

JPMorgan’s FY26E adjusted EBITDA forecast for Sea Ltd. remains more than 20% above consensus estimates, with the bank suggesting that "scale benefits and growth in ad revenues are likely to drive positive revisions" to Sea’s revenue and margin expectations in the mid-to-long term.

In other recent news, Sea Limited reported its second-quarter earnings for 2025, delivering a mixed financial performance. The company missed its earnings per share (EPS) forecast, posting an actual EPS of $0.65 compared to the projected $0.77, a shortfall of 15.58%. However, Sea Limited’s revenue exceeded expectations, reaching $5.3 billion, marking a 38% increase year-over-year against the forecasted $4.55 billion. Despite the EPS miss, the strong revenue growth fueled positive investor sentiment. In another development, Bernstein SocGen Group raised its price target for Sea Limited to $210 from $180, while maintaining an Outperform rating on the stock. The firm highlighted Sea Ltd.’s notable recovery, emphasizing the stock’s significant increase over the past 18 months. These recent developments underscore the company’s strategic initiatives and market performance.

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