JPMorgan downgrades Sea Limited on increase in competition

JPMorgan analyst Ranjan Sharma downgraded Sea Limited to Neutral from Overweight with a price target of $78, down from $84. The stock is up 116% from the lows in January, mainly driven by positive earnings revisions within e-commerce, the analyst tells investors in a research note. However, the firm believes incremental increases in competition are now likely to cap Sea’s positive earnings revisions and share price in the near-term. JPMorgan now sees the shares as fairly valued. The firm notes Tokopedia is now offering shipping subsidies at all basket sizes in Indonesia effective June 20 while its channel checks indicate that increased spending from TikTok appears limited only to Indonesia. Sea’s positive e-commerce earnings revisions are “likely to stall, JPMorgan adds.