In a report released today, Venugopal Garre from Bernstein maintained a Buy rating on Sea (SE – Research Report), with a price target of $130.00.
Venugopal Garre has given his Buy rating due to a combination of factors including Sea Ltd’s strong operational performance in the recent quarter and its growth-focused management strategy. The company has shown promising results in e-commerce, with profitability expected to exceed consensus expectations. Despite some anticipated declines in gaming and fintech margins, these are expected to remain in line with forecasts.
Sea’s e-commerce segment is projected to experience mid-teens growth in gross merchandise value, supported by increases in monthly active users, average order value, and order frequency. Additionally, SEA Money Indonesia is demonstrating positive momentum in the fintech space. Although there are some concerns about potential risks in net income forecasts due to non-cash items, the overall outlook remains positive, with several catalysts expected to sustain the company’s stock performance.
According to TipRanks, Garre is a 4-star analyst with an average return of 31.4% and a 66.67% success rate.
In another report released on February 25, Barclays also reiterated a Buy rating on the stock with a $148.00 price target.