In a report released yesterday, Venugopal Garre from Bernstein maintained a Buy rating on Sea (SE – Research Report), with a price target of $145.00.
Venugopal Garre has given his Buy rating due to a combination of factors that highlight Sea’s strong performance and potential for future growth. The company’s e-commerce strategy is proving effective, with Sea gaining market share even in a competitive landscape. This is supported by increasing take rates and improved gross margins and EBITDA, although further profitability improvements are necessary to meet consensus expectations.
Additionally, Sea’s fintech segment is expanding significantly, with a diversified loan book that has grown to $5 billion and profits reaching $850 million annually. The gaming division remains robust, with strategic initiatives like collaborations and new game launches bolstering its relevance. Management’s optimistic outlook, expecting over 20% GMV growth in e-commerce and substantial growth in gaming and fintech, further supports the Buy rating. Consequently, EBITDA estimates have been raised by 8% for CY25-26, with a target price set at $145.
In another report released today, DBS also maintained a Buy rating on the stock with a $157.00 price target.