Sea Limited Stock Poised for Growth as Competitive Landscape Shifts

A fresh analysis from Maybank Research suggests a significant opportunity may be emerging for shares of Southeast Asian technology conglomerate Sea Limited. The firm’s analysts have reaffirmed their buy rating, pointing to a fundamental improvement in the company’s core operating markets driven by an easing of intense competitive pressures.

Investor attention is currently fixed on Sea’s forthcoming quarterly earnings report. According to consensus analyst estimates, revenue is projected to reach $6.69 billion, representing year-over-year growth exceeding 34%. The forecasted earnings per share of $0.91 would signal an even stronger surge of nearly 47%.

Looking further ahead, various models indicate full-year 2026 revenue could land between $23.3 billion and $27.7 billion. Maybank’s assessment is that a "more rational competitive environment" will sustain the company’s financial momentum through 2027. Sea is also positioned to benefit from its in-house logistics capabilities, which are expected to yield cost advantages as transaction volumes increase.

Valuation Points to Substantial Upside

Despite these optimistic projections, valuation models imply the stock remains undervalued. Maybank’s own two-stage discounted cash flow analysis points to an intrinsic value of approximately $276.47 per share—a premium of over 120% to the current trading level. Furthermore, an estimated free cash flow of $4.07 billion in 2026 would provide the company with significant financial flexibility. This strength supports both expansion initiatives and an authorized share repurchase program worth $1 billion.

Should investors sell immediately? Or is it worth buying Sea?

Currently trading around €104, the equity has retreated considerably from its September 2025 52-week high. The upcoming quarterly report will be a key test of whether the competitive turnaround highlighted by Maybank is beginning to be reflected in the financial performance.

Easing Rivalry Fuels Optimism

The cornerstone of Maybank’s bullish thesis is a observed cooling in the fierce price competition within e-commerce. The research team has issued a price target of $156 for Sea, based on a detailed examination showing competitive relief in key regions such as Indonesia, Brazil, and Taiwan. Major rivals, including TikTok Shop and Mercado Libre, are reportedly shifting toward more rational business models; for instance, TikTok is raising seller commissions, while Mercado Libre is reducing shipping subsidies.

This shift allows Sea greater latitude to optimize its own fee structures without immediately ceding market share to heavily subsidized competitors, directly bolstering its margin outlook. In Taiwan, an additional factor is at play: operational setbacks for rival Coupang are strengthening the market position of Sea’s Shopee platform.