It's Time For SEA To Reach Safe Harbour

🌟🌟$Sea Ltd(SE)$  is off to a great start this week as its shares are up 4.3% today and in the past 5 days it has risen 10.7%.  SEA is now up a huge 61% year todate but still down 21% in 2023.

SEA jumped on Monday after it receives much welcomed upgrades from Bank of America and Morgan Stanley. 

Bank of America upgraded SEA to Buy from neutral.  It also raises its price target to USD 70 from USD 62, citing competition is stabilising for Sea's Shopee ECommerce business which is well positioned to defend its market share in South East Asia.

Morgan Stanley is even more Bullish as it has upgraded Sea to an Overweight rating from a neutral equal weight rating.  It sets a firm price target of USD 70, up from USD 65.  Morgan Stanley Analysts said that the upgrade represents higher conviction for SEA basedon year to date momentum and relatively rational ECommerce competition.

SEA is one of the largest Internet services providers in Southeast with businesses in Digital Entertainment, ECommerce and Digital payments and financial services.  Digital Entertainment Services is provided by Garena which is a leading global online games developer and publisher.  Shopee is the largest regional ECommerce platform in Southeast Asia and Taiwan.  SeaMoney is a leading digital payments and financial services provider in Southeast Asia.

Sea's share price tumbed in 2023 when Sea said that it would ramp up investment in Shopee to compete with its rivals  in Southeast Asia including Tik Tok Shop and Temu.  This marked a shift for SEA that focused on cutting costs in order to reach profitability.  Investors were unhappy with the change in strategy and the stock plunged.

However a strong earnings report on Q4 23 in March gave Sea's share price a much needed boost.  Shares hit a 6 month high at USD 63.25 on March 14 before coming down.

I am bullish on Sea as I believe that Sea is growing slow and steadily in Southeast which is one of the fastest growing regions in the world.  There are still challenges ahead but with great management under CEO Forrest Li, Sea will be able to handle the turbulences ahead to reach safe harbour in the future.

Sea, Born in Singapore, Going Strong!

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