On Wednesday, JPMorgan analyst Ranjan Sharma upgraded Sea Ltd. (NYNYSE:SE: SE) stock from Neutral to Overweight, significantly raising the price target to $190 from the previous $135. The upgrade comes as Sea Ltd.’s stock has shown remarkable momentum, gaining over 45% year-to-date and currently trading near its 52-week high of $155.52. Sharma’s decision follows Sea Ltd.’s impressive first-quarter results in 2025, which highlighted a better-than-expected EBITDA margin and strong growth in gross merchandise volume (GMV). According to InvestingPro data, the company’s EBITDA has reached $1.05 billion in the last twelve months.

The company’s ecommerce platform, Shopee, reported an EBITDA margin of 0.9% to GMV, which Sharma noted as a positive surprise, especially with a 21% year-over-year increase in GMV. This growth is believed to have surpassed overall market expansion, with the company achieving impressive revenue growth of 28.75% over the last twelve months. Additionally, the firm observed a 6% year-over-year reduction in logistics costs per order in Asia, despite enhancements in service quality and a broader coverage area.

Sharma highlighted the impact of declining logistics costs, suggesting that it could enhance Shopee’s cost competitiveness and support margin expansion. This is particularly relevant as the effective subsidies as a percentage of GMV decrease. Another significant development was the over 50% year-over-year growth in advertising revenues, indicating a robust uptrend in monetization efforts. InvestingPro analysis reveals 20+ additional key insights about Sea Ltd.’s financial health and market position, available exclusively to subscribers.

The number of sellers investing in advertisements on the Shopee platform grew by 22% compared to the previous year, and they also increased their total ad spend. This trend reflects the platform’s value proposition to both sellers and buyers, which Sharma believes will continue to drive platform growth and generate higher-margin revenues.

In light of these developments, JPMorgan has revised its forecasts for the company’s adjusted EBITDA for the fiscal years 2025 and 2026, increasing estimates by 55% and 44%, respectively. With analyst price targets ranging from $120 to $200, and the next earnings report due on May 13, 2025, investors are closely watching Sea Ltd.’s progress. Sharma’s optimistic outlook on Sea Ltd. is rooted in Shopee’s market leadership and scale, which he anticipates will provide multiple opportunities to enhance monetization and foster continued growth. For comprehensive analysis and detailed metrics, access Sea Ltd.’s full Pro Research Report on InvestingPro.

In other recent news, Sea Ltd has reported significant developments across its business segments. The company’s first-quarter results for 2025 showed a notable increase in EBITDA margin to 0.9% of GMV, with a year-over-year GMV growth of 21%. Advertising revenue also grew by over 50%, reflecting increased spending by more sellers on the Shopee platform. In the fintech sector, Sea Ltd’s gross loan book grew by 16% quarter-over-quarter, with a 14% increase in adjusted EBITDA.

Analyst opinions on Sea Ltd have varied, with JPMorgan upgrading the stock to Overweight and raising the price target to $190, citing stronger e-commerce growth and potential margin expansion. Conversely, BofA Securities downgraded the stock to Neutral with a $160 price target, noting a more balanced risk-reward scenario. Morgan Stanley maintained an Overweight rating, setting a $167 target and highlighting strong performance in the Digital Entertainment and E-commerce segments.

JPMorgan later downgraded Sea Ltd to Neutral, reducing the price target to $135 due to concerns over potential macroeconomic challenges and softer consumer spending. They also adjusted their forecasts for the company’s e-commerce and fintech segments. Despite these mixed assessments, the gaming segment, particularly Garena’s Free Fire, continues to show robust growth, with a 35% year-over-year revenue increase.