Sea Limited posts strong Q1 growth; Jefferies raises price target despite market concerns

Sea Limited reported strong Q1 2026 results with GAAP revenue up 46.6% to $7.1 billion and net income rising 6.7% to $438.2 million. Jefferies reaffirmed a Buy rating and raised the price target to $157 from $150, signaling confidence in the stock's upside from $97.22. However, concerns remain over Shopee's 2026 guidance, potential margin compression, and rising costs in SeaMoney's expanding loan portfolio. The company aims to maintain competitive advantages while managing financial discipline amid these challenges.