Goldman Sachs analyst Miang Chuen upgraded Momo.com to Buy from Neutral with a price target of NT$300, which represents 21% total return potential for the stock that trades on the Taiwan Stock Exchange The analyst sees Momo.com as the key beneficiary of "high" business-to-consumer e-commerce growth in Taiwan. The pace of offline-to-online retail migration remains strong and industry dynamics improve with less price competition and free shipping, Chuen tells investors in a research note. Chuen, which sees an improving sector outlook, also recommends buying shares of Sea Limited (SE) with an unchanged price target of $43. Sea is the leading gaming and e-commerce player in Taiwan, says the analyst.

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.