In a report released yesterday, John Cheong from UOB Kay Hian maintained a Buy rating on Sea, with a price target of $200.18.
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John Cheong has given his Buy rating due to a combination of factors that suggest potential for future growth despite current challenges. The 3Q25 results showed that Sea’s revenue growth was robust across all segments, driven by Shopee’s increased gross merchandise value and monetization, Monee’s expanding loan book, and Garena’s recovery in bookings. However, the earnings fell short of expectations primarily due to Shopee’s reinvestment in user acquisition and marketing, which compressed margins.
Despite the short-term dip in e-commerce profitability, John Cheong believes that the minor reinvestments made during 3Q25 could unlock greater potential for future growth. The company’s integrated platform, which combines digital entertainment, e-commerce, and digital financial services, is well-positioned to capitalize on market opportunities. Consequently, he maintains a Buy rating with a slightly adjusted target price, reflecting confidence in Sea’s strategic direction and long-term prospects.
According to TipRanks, Cheong is a 5-star analyst with an average return of 18.8% and a 69.07% success rate. Cheong covers the Technology sector, focusing on stocks such as UMS Integration, CSE Global, and Aztech Global Ltd..
In another report released yesterday, DBS also maintained a Buy rating on the stock with a $221.00 price target.