Balancing Growth and Valuation: A Hold Rating for Sea Limited Amid Strong Performance and Investment Losses

In a report released today, Helena Wang from Phillip Securities upgraded Sea (SE – Research Report) to a Hold, with a price target of $140.00.

Helena Wang’s rating is based on a mix of positive growth indicators and valuation concerns. Sea’s Shopee and SeaMoney divisions have shown impressive revenue growth, with Shopee achieving a 41% year-over-year increase and SeaMoney a 55% rise. This growth is driven by higher take rates and robust loan book expansion, which are promising signs for the company’s future performance.
However, despite these strong growth metrics, the recent strength in Sea’s share price suggests limited upside potential, which tempers the overall valuation outlook. Additionally, the company’s profitability was impacted by a higher-than-expected investment loss, which affected the bottom line. As a result, while the company demonstrates strong growth momentum, the valuation concerns lead to a Hold rating.

According to TipRanks, Wang is a 3-star analyst with an average return of 12.1% and a 71.43% success rate.

In another report released on March 5, TD Cowen also maintained a Hold rating on the stock with a $120.00 price target.