Jpmorgan released a research report, downgrading Sea's rating from 'hold' to 'neutral', partly due to competition from Temu, a product of TikTok and Pdd Holdings.
According to the app of China Finance, jpmorgan has released a research report which downgraded its rating of Sea (SE.US) from 'hold' to 'neutral', partially due to the intensifying competition from Temu, a product of ByteDance's TikTok and Pdd Holdings (PDD.US).
Jpmorgan analysts Ranjan Sharma, Sigrid Qiu and Alex Yao said in a report that 'in our view, the gradual intensification of competition could now limit the positive trend of (Sea) recent profit revisions and stock price.'
Jpmorgan also cut the target price for the Singapore-based company from $84 to $78.
Sea operates three core online businesses, including e-commerce, digital financial services and digital entertainment. Its stock price has risen nearly 90% so far this year.
'In our view, Shopee's high commission rates have increased the tendency of sellers to look for alternative platforms,' Sharma added, 'therefore, the gradual intensification of competition could lead to Shopee's sales and marketing expenses in managing its market share to be higher than expected.'