Sea Limited downgraded to Neutral from Overweight at JPMorgan

JPMorgan analyst Ranjan Sharma downgraded Sea Limited to Neutral from Overweight with a reduced price target of $45 The company’s decision to accelerate e-commerce investments in growth is likely to materially weigh on its earnings and share price in the near-term, the analyst tells investors in a research note. The firm says Sea could potentially incur heavy investments in the second half of 2023, resulting in earnings decline. Despite the relative valuation multiples “appearing undemanding” after the stock’s underperformance, re-rating catalysts are unlikely to materialize before the first half of 2024, contends JPMorgan.