All three of Sea Limited’s core businesses are posited well for gains from here, according to Bank of America. The bank upgraded shares of the Singapore-headquartered consumer internet company to buy from neutral. Sea is a holding company for e-commerce marketplace operator Shopee and gaming platform and developer Garena. Analyst Sachin Salgaonkar also raised his price target to $215 from $206, implying upside of 32% from Wednesday’s close. Although shares of Sea have surged 54% in 2025, Salgaonkar noted that the company has been trading range bound in the last few months and fell 10% on Wednesday due to concerns of expansion in Latin America and a slower margin uptake because of investment. However, he said that these concerns are misplaced and not new. SE YTD mountain SE YTD chart Salgaonkar noted that medium-term fundamentals are robust across all of Sea’s various businesses: e-commerce, gaming and fintech. His current earnings estimates for the fiscal 2026 and 2027 years are approximately 3% to 5% higher than consensus. Within e-commerce Salgaonkar wrote that an additional catalyst comes from market share consolidation in favor of the top two platforms, with Shopee being one of these. “We find Shopee well positioned to benefit from lower competition, increasing ad yields, better commissions & higher proportion of in-sourcing allowing the company to positively surprise on revenue & margins in coming years,” he said. In gaming, Sea could leverage AI to help improve engagement by increasing customer personalization. Garena’s Free Fire game is also expected to show steady growth, driven by future potential collaborations like with Naruto and continued expansion in emerging markets, the analyst added. Salgaonkar also pointed out that Sea has room to positively surprise. While the company is growing its lending offering, he noted that it is adopting a more cautious approach in this business. “In Fintech, Sea is expanding its offering from on-Shopee to off-Shopee and secured loans and gradually scaling in all markets, including Brazil,” he wrote. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
