JPMorgan upgrades Sea ahead of ‘swift’ profitability improvement

JPMorgan analyst Ranjan Sharma upgraded Sea Limited to Overweight from Neutral with a price target of $70, down from $85. The company’s urgency to achieve self-sufficiency and be cash flow positive supports positive earnings revisions, Sharma tells investors in a research note. The analyst expects "swift improvement" in Sea’s profitability and believes the stock is pricing in concerns regarding its ability to monetize and reduce losses. Q3 will mark the peak in the company’s losses, says Sharma.