JPMorgan Reiterates a Buy Rating on Sea Limited (SE), Keeps the PT

Core Viewpoint - Sea Limited (NYSE:SE) is recognized as a strong revenue growth stock, with JPMorgan maintaining an Overweight rating and a price target of $230 despite recent share price fluctuations [1][2]. Group 1: Company Performance - Sea Limited experienced a 10% drop in share price on October 14 due to investor concerns regarding e-commerce margins [2]. - JPMorgan believes that the company's e-commerce profitability will improve over time, despite expectations that margins may remain flat in 2026 [2]. - The firm anticipates that seasonal fluctuations in margins will occur, but overall improvement is expected [2]. Group 2: Business Segments and Growth Potential - Sea Limited operates through three main business segments: Digital Entertainment, E-commerce, and Digital Financial Services [3]. - Recent monetization changes to the Shopee platform are expected to enhance growth investments, improve monetization, and unlock new advertisement revenue [3]. - JPMorgan sees significant upside potential for the company's earnings in 2026 as a result of these changes [3].