Phillip Securities analyst Helena Wang upgraded the rating on Sea (SE – Research Report) to a Buy today, setting a price target of $140.00.
Helena Wang has given her Buy rating due to a combination of factors that highlight Sea’s strong growth potential. Shopee and SeaMoney have maintained their growth momentum, driven by increased take rates in commissions and advertising, alongside a robust expansion in their loan book. The e-commerce market is stabilizing, and Shopee is successfully defending its market share with a notable growth in gross merchandise value, which surpasses the industry’s average growth rate. This provides room for further monetization, especially as their take rate remains lower than international peers, offering potential for future increases.
Garena has shown significant improvement with a 20% year-over-year growth in user metrics, and its revenue is expected to grow by 9% in the upcoming fiscal year. The recent share price movement has led to an upgrade in the recommendation from Neutral to Accumulate, with a maintained discounted cash flow target price. SeaMoney’s expansion into off-Shopee loans is also a key growth driver, catering to the large unbanked population in Southeast Asia, and maintaining a low non-performing loan ratio. These factors collectively contribute to the positive outlook and the Buy rating for Sea’s stock.
In another report released on March 23, Arete Research also initiated coverage with a Buy rating on the stock with a $151.00 price target.