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Sea’s Strategic Market Position and Operational Efficiency in Brazil Justify Buy Rating

Sea’s Strategic Market Position and Operational Efficiency in Brazil Justify Buy Rating

Divya Gangahar, an analyst from Morgan Stanley, maintained the Buy rating on Sea (SEResearch Report). The associated price target was raised to $197.00.

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Divya Gangahar has given his Buy rating due to a combination of factors that highlight Sea’s strong market position and operational efficiency in Brazil. Shopee, Sea’s e-commerce platform, has successfully captured a significant share of the low-ticket item segment in Brazil, achieving a 15% market share by 2024. This success is attributed to Shopee’s competitive pricing, effective logistics, and strategic investments that have allowed it to offer low shipping costs, making it appealing to mass consumers.
Furthermore, Shopee’s logistics capabilities are best-in-class, with a 21% reduction in logistics costs per order year-over-year as of the first quarter of 2025. This improvement, coupled with faster delivery times, enhances customer experience and supports Shopee’s competitive edge. Despite MercadoLibre’s recent adjustments in shipping policies, Shopee’s established subsidies and cost efficiencies position it well to maintain and potentially grow its market share, justifying the Buy rating.

In another report released on May 29, Loop Capital Markets also maintained a Buy rating on the stock with a $190.00 price target.

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