Sea Limited upgraded to buy on strong fundamentals and attractive valuation with $120-$150 price target by 2027.

Sea Limited has been upgraded to a buy rating due to its strong fundamentals including a 44% gross margin, $5.3 billion free cash flow, and a robust balance sheet with $10.5 billion in cash. The stock is attractively valued with an EV/EBITDA of 12.1x for 2026, a PEG ratio below 1, and a free cash flow yield near 9.5% at $90 per share. Analysts see upside potential with price targets ranging from $120 to $150 by the second half of 2027, while downside risk is limited to $80. Key risks include insider selling and macroeconomic challenges.