John Blackledge, an analyst from TD Cowen, maintained the Hold rating on Sea. The associated price target was lowered to $135.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
John Blackledge’s rating is based on a combination of factors including Sea’s projected financial performance and market dynamics. He anticipates a solid revenue growth for Sea, with a forecasted 32.2% year-over-year increase in total revenue for the second quarter of 2025. However, despite this growth, there are signs of deceleration in key segments such as Shopee and Garena, which have led to a slight trimming of revenue and EBITDA forecasts.
Moreover, while Garena’s quarterly active users are expected to increase, the number of paying users is projected to decline, reflecting a potential challenge in monetization. Additionally, although Shopee’s gross orders and GMV are expected to grow, the growth rate is only marginally accelerating. These factors, combined with a modest reduction in the price target from $140 to $135, contribute to the Hold rating, indicating a balanced outlook with limited upside potential.