- Although Sea's Garena may be facing headwinds of Free Fire ban in India and normalization of growth in the post-covid world, I am optimistic for Garena in the long run.
- Sea's Shopee is showing improving profitability due to better unit economies in core markets and as a result of huge scale of the Shopee platform.
- Shopee's exit from France showed discipline in executing its e-commerce playbook and its new markets, Brazil and Poland, are showing strong traction.
- Based on the new information, my revised worst case target price is $131.77, implying an upside potential of 36% from current levels, making Sea Limited attractive from a valuation perspective.
For further details see:
Sea Limited: Market Overreaction Has Created A Valuable Buying Opportunity