In a report released yesterday, Divya Gangahar from Morgan Stanley maintained a Buy rating on Sea, with a price target of $197.00.
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Divya Gangahar’s rating is based on the impressive growth metrics exhibited by Sea Ltd. Free Fire, one of Sea’s key offerings, has shown a significant year-over-year revenue increase of 51% in June, which indicates strong user engagement and monetization. Additionally, the return of esports in India through the Free Fire Max India Cup is expected to further bolster the company’s presence in a crucial market.
Moreover, Shopee, Sea’s e-commerce platform, has demonstrated steady growth in ASEAN and Brazil, despite competitive pressures. The introduction of fixed order fees in several markets is anticipated to enhance revenue streams. These factors collectively suggest a positive outlook for Sea, justifying the Buy rating.