JPMorgan analysts upgraded Sea Ltd. (NYSE:SE) to Overweight from Neutral, raising the price target to $90 from $66, following the company’s reported Q2 results yesterday. The analysts highlighted the potential for significant positive earnings revisions across all three of Sea’s major business segments.
The analysts particularly expect substantial improvements in e-commerce profitability, driven by Sea’s strong market position, efficient spending, and higher growth rates. JPMorgan increased the fiscal 2025 Shopee adjusted EBITDA forecast by approximately 50%, leading to a 15% boost in the 2025 Group adjusted EBITDA forecast, which is now about 35% higher than the consensus. The upgrade reflects confidence that continued positive earnings revisions will sustain Sea Ltd.’s strong market performance, with shares already up 85% year-to-date.