In a report released today, John Blackledge from TD Cowen maintained a Hold rating on Sea (SE – Research Report), with a price target of $110.00.
John Blackledge has given his Hold rating due to a combination of factors including the expected financial performance and growth prospects of Sea Limited. The forecast for the fourth quarter of 2024 shows a total revenue of $4.60 billion, which represents a 27.3% year-over-year increase but is slightly below the consensus estimate. The Shopee segment is anticipated to see a revenue growth of 28.5%, driven by a 15.1% increase in gross merchandise value, while Garena’s bookings are expected to accelerate due to user growth.
Despite these positive growth indicators, the EBITDA forecast of $566.5 million is slightly below the consensus of $583 million. Additionally, while there are improvements in Garena’s user base and Shopee’s monetization, the overall financial outlook remains mixed. The price target has been adjusted to $110 from the previous $100, reflecting modestly higher revenue and EBITDA estimates for Shopee in the coming years. These factors contribute to the decision to maintain a Hold rating, indicating a balanced view of potential risks and rewards.
According to TipRanks, Blackledge is a 5-star analyst with an average return of 11.8% and a 57.20% success rate. Blackledge covers the Communication Services sector, focusing on stocks such as Meta Platforms, Alphabet Class C, and Match Group.
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