Analysts have raised Sea’s price target slightly to $198.44, citing robust segment results and Shopee’s stable competitive position in Southeast Asia despite rising competition, while growth risks in Brazil remain balanced.
Analyst Commentary
- Stable competitive intensity in Southeast Asia, with Shopee and TikTok Shops gaining market share from smaller platforms due to superior assortment, strong user engagement, and expansion of live streaming offerings.
- Shopee has maintained a steady business approach despite intensified competition from MercadoLibre targeting the lower average selling price (ASP) segment; no immediate strategic changes observed.
- Coupang’s expansion in Taiwan is not meaningfully impacting Shopee’s business, as its one-party (1P) model is distinct and limited in effect.
- Sea reported robust results across all business segments, reinforcing bullish analyst sentiment regarding its competitive positioning and prospects.
- Concerns remain about medium-term Shopee growth in Brazil due to increased competitive pressure from MercadoLibre, particularly following promotional campaigns and changes to free shipping thresholds; risk-reward profile viewed as balanced.
Valuation Changes
Summary of Valuation Changes for Sea
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $196.12 to $198.44.
- The Future P/E for Sea has significantly risen from 32.36x to 35.92x.
- The Discount Rate for Sea has fallen from 8.55% to 7.91%.
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