BofA analyst Sachin Salgaonkar says that post the free shipping threshold being lowered by MercadoLibre (MELI), and while there is no data/evidence to suggest that Sea Limited’s (SE) Shopee may be adversely impacted, its ad promos for 7/7 sale day offer R$14M discount coupons, free shipping coupons over R$10 and 30% off in official stores. Currently it looks like this is just one day sale strategy. The firm sees risks to medium term growth for Shopee in Brazil as MercadoLibre gets aggressive. BofA believes, however, that it will take time for MercadoLibre to attract and have inventory across these price points to gain sustained traction here. Currently it doesn’t see any change in strategy or approach by Shopee in the Brazil market. The firm maintains a Neutral rating on Sea on balanced risk-reward.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on SE:
- Sea’s Strategic Market Position and Operational Efficiency in Brazil Justify Buy Rating
- MercadoLibre lowers free shipping threshold in Brazil, says BofA
- Sea Limited put volume heavy and directionally bearish
- Sea Limited price target raised to $190 from $165 at Loop Capital
- Balanced Outlook on Sea: High Valuation and Mixed Signals Justify Hold Rating