CLSA analyst Marcus Liu maintained an Outperform rating on Sea Limited and raised his price target on the shares to $54.50 from $44.60 following the company's Q4 earnings report. Liu said he is increasing his revenue assumptions for Garena and Shopee for 2020 and 2021, though he made smaller changes to EBITDA estimates, given narrowing margins and wider losses in the quarter. The analyst also said he increased the multiple from 0.3x to 0.4x P/GMV for Shopee, reducing the discount to global peers, and that he continues to value Garena at a discount to regional gaming peers, given the concentration risk in Free Fire.

Loop Capital upgraded Sea Limited to Buy from Hold with a price target of $92, up from $59. The stock's valuation pressure the last two years is mainly because of aggressive competition and share loss to TikTok, the analyst tells investors in a research note. However, the firm says the recent announcement of a commission rate increase by the combined TikTok-Tokopedia, its first move since merging to satisfy Indonesian regulators, "has sparked a revaluation" Sea shares. Loop believes this signals that the shift to sustained profitable growth is "finally underway" and serves as a significant catalyst for revaluation of Sea Limited. With "competitive rationality" setting in, Loop moved from its "broken stock" valuation framework for Sea.