DBS downgrades Shopee, Garena owner Sea to 'sell'

Singapore

INTERNET company Sea Ltd, which owns e-commerce platform Shopee and game developer Garena, is now rated "sell" by DBS Group Research down from "fully valued", given its slower-than-expected e-commerce sales, higher losses in the e-wallet business, and rich valuations.

In a report on Thursday, DBS kept its target price unchanged at US$72.50 for the Singapore-based, New York-listed company. Sea shares had closed at US$114.46 on Wednesday, up US$7.11 or 6.6 per cent.

Analyst Sachin Mittal wrote: "We like Sea's gaming and e-commerce business, although we are less optimistic on the prospects of the hyper-competi…

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