In a report released yesterday, Sachin Salgaonkar from Bank of America Securities reiterated a Buy rating on Sea (SE – Research Report), with a price target of $160.00.
Sachin Salgaonkar has given his Buy rating due to a combination of factors that highlight Sea’s strong performance and growth potential across its business segments. The company is expected to deliver robust first-quarter results, driven by steady momentum in e-commerce, gaming, and digital financial services. Despite a challenging macroeconomic environment, Sea is projected to maintain its e-commerce gross merchandise value growth at approximately 20% year-over-year, with Shopee’s EBITDA benefiting from scale efficiencies and reduced investments.
In the gaming sector, Sea is anticipated to experience a 10% year-over-year increase in quarterly active users, with operating margins improving due to a favorable mix of high-margin games and reduced expenditures. The digital financial services division is also expected to see significant revenue growth, with non-performing assets remaining stable and timely buy now pay later payments. While accounting changes may lead to optically lower growth figures, the underlying EBITDA remains strong, supporting the Buy rating with a price objective of $160.
In another report released on April 16, Morgan Stanley also reiterated a Buy rating on the stock with a $167.00 price target.