Sea Limited upgraded to buy despite 40% stock drop, backed by strong revenue and EBITDA growth.

Sea Limited's stock has fallen 40% but the company was upgraded to a buy due to its strong revenue and EBITDA growth. Shopee's rising logistics costs reflect a tougher competitive environment but also strengthen its market position. The Garena and Monee divisions contribute nearly 80% of EBITDA, adding stability beyond e-commerce. Trading at a forward P/E of 22x, well below its 5-year average of 37x, Sea offers an attractive valuation with expected top-line growth over 30% and EBITDA growth of 40%.