JPMorgan maintains Sea Ltd stock rating despite 10% drop

Published 16/10/2025, 12:46
JPMorgan maintains Sea Ltd stock rating despite 10% drop

Investing.com - JPMorgan has reiterated its Overweight rating and $230.00 price target on Sea Ltd (NYSE:SE) following a 10% decline in the company’s share price. The target represents significant upside potential for the company, which currently boasts a market capitalization of nearly $97 billion and has demonstrated strong revenue growth of 34% over the last twelve months.

The stock dropped 10% amid growing investor concerns about e-commerce margins and potential new market expansion by Shopee, Sea’s e-commerce platform, while the NASDAQ gained 0.7% during the same period. InvestingPro data shows the stock is currently in oversold territory, with technical indicators suggesting a potential bounce-back opportunity.

JPMorgan believes Sea’s e-commerce profitability should continue to improve, despite some investors expressing concerns that margins might flat-line over 2026, noting that margins can fluctuate seasonally.

The investment bank suggests recent e-commerce industry monetization changes should enable Shopee to enhance monetization, support growth investments, unlock advertising revenues, reduce logistics costs, and drive higher customer engagement.

JPMorgan sees "meaningful upside" to 2026 consensus earnings expectations for Sea Ltd, though it could not comment specifically on new market expansion plans as the company has not confirmed any such launch.

In other recent news, Sea Ltd. reported its second-quarter earnings for 2025, which showed a mixed financial performance. The company missed its earnings per share (EPS) forecast, reporting an actual EPS of $0.65 compared to the projected $0.77. However, Sea Ltd.’s revenue exceeded expectations, reaching $5.3 billion, marking a 38% increase year-over-year against the forecasted $4.55 billion. JPMorgan has raised its price target on Sea Ltd. to $230 from $208, maintaining an Overweight rating due to positive outlooks on its e-commerce platform, Shopee. Bernstein SocGen Group also increased its price target to $210 from $180, citing the company’s significant recovery over the past 18 months. Meanwhile, Philip Securities noted market adjustments related to the company’s valuation, attributing a recent decline in shares to this factor. JPMorgan reiterated its Overweight rating, highlighting increased take rates across major e-commerce platforms in ASEAN markets. These developments indicate a focus on growth and strategic initiatives for Sea Ltd.

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