Shares of Sea Ltd. jumped in Monday trading after the Singapore-based internet services company received a pair of upgrades from analysts at Bank of America and Morgan Stanley.
Sea stock gained 7.9% on the stock market today to close at 59.43. Shares jumped above the stock's 21-day moving average, according to IBD MarketSurge. Sea stock has gained nearly 50% so far this year, after falling 22% in 2023.
BofA Securities upgraded Sea stock to buy from neutral. Analysts with BofA also raised their price target for Sea to 70, up from 62. The analysts said competition is stabilizing for Sea's Shopee e-commerce business which they said is positioned to defend its market share in Southeast Asia, according to Seeking Alpha.
Morgan Stanley, meanwhile, upgraded Sea to an overweight ratings, from a neutral equal weight. Analysts with the firm set a price target of 70, up from 65. Analysts with Morgan Stanley said the upgrade represents higher conviction for the company based on year-to-date momentum and "relatively rational" e-commerce competition, the note said, according to The Fly.
Sea Stock: Coming Off Q4 Earnings Beat
Sea is one of the largest internet services providers in Southeast Asia. It operates businesses in digital entertainment, e-commerce, and digital payments and financial services. The company's products include the e-commerce focused Shopee, which services Southeast Asia and Taiwan. The company also owns the digital-payments provider SeaMoney, as well as Garena, a global online games developer.
The company's stock struggled last year. Investors reacted negatively, starting last summer, when Sea said it would ramp up investment in Shopee to compete with challengers in the Southeast Asia market, including TikTok Shop and Temu. That marked a shift for a company that in 2022 focused on cutting costs to reach profitability.
But a strong earnings report last month gave Sea stock a boost. Shares hit a six-month high at 63.25 on March 14, before easing back.
Meanwhile, Sea stock ranks a strong No. 8 out of 60 stocks in IBD's Retail-Internet industry group, according to IBD Stock Checkup. It has a so-so IBD Composite Rating of 66 out of 99.
IBD's Composite Rating combines fundamental and technical metrics for an overview of a stock's strengths. The best growth stocks have a Composite Rating of 90 or better.
