Loop Capital upgrades Sea Limited to Buy on 'competitive rationality'
Loop Capital upgraded Sea Limited to Buy from Hold with a price target of $92, up from $59.
The stock's valuation pressure the last two years is mainly because of aggressive competition and share loss to TikTok $ByteDance(FT0001$ , the analyst tells investors in a research note.
However, the firm says the recent announcement of a commission rate increase by the combined TikTok-Tokopedia, its first move since merging to satisfy Indonesian regulators, "has sparked a revaluation" Sea shares. Loop believes this signals that the shift to sustained profitable growth is "finally underway" and serves as a significant catalyst for revaluation of Sea Limited.
With "competitive rationality" setting in, Loop moved from its "broken stock" valuation framework for Sea.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment