JPMorgan cuts Sea Limited target, opens ‘Negative Catalyst Watch’

JPMorgan lowered the firm’s price target on Sea Limited to $66 from $78 and keeps a Neutral rating on the shares. The analyst also opened a “Negative Catalyst Watch” on the shares ahead of the Q2 report. The stock has gained 96% since the lows in January and conversations with investors indicate elevated e-commerce expectations into the quarter, the analyst tells investors in a research note. The firm believes Sea’s e-commerce adjusted EBITDA could surprise negatively due to continued investments by Shopee in logistics in Asia and in the overall marketplace in Brazil. Hence it believes the August results could be a negative catalyst for the stock.