Sea Limited initiated with an Outperform at Wedbush

Wedbush analyst Scott Devitt initiated coverage of Sea Limited with an Outperform rating and $48 price target. Within eCommerce and advertising, MercadoLibre meets the firm’s criteria as being among “the highest-quality companies within the multi- category internet sector that can be purchased, closely monitored, and held,” says the analyst, who calls MercadoLibre “the leading eCommerce platform in southeast Asia.” The stock has been drained by the post-pandemic period due to “a strategic misstep and intensified competition,” but GMV has increased by 4-times since pre-pandemic and consolidated margin has expanded to 12% in 2023, the analyst added.