Analyst Venugopal Garre of Bernstein reiterated a Buy rating on Sea, reducing the price target to $150.00.
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Venugopal Garre has given his Buy rating due to a combination of factors tied to Sea’s stronger fundamentals and improved business mix. He notes that, unlike in past periods when e-commerce was loss-making and fintech nascent, Sea now generates more than triple the EBITDA, runs a lean, asset-light model, and continues to scale Shopee’s logistics and merchant network in ways that should be hard for new “agentic” or AI-native rivals to copy.
Garre also highlights that while 2026 will show slower earnings growth, this stems from deliberate investments to deepen Sea’s competitive moat rather than from market or competitive weakness. He argues that the firm’s capacity to produce over US$3.5 billion in annual EBITDA, potentially accumulating more than US$20 billion in cash in three years even on flat growth assumptions, is underappreciated at current valuations; despite trimming his 2026 earnings estimate by 8% and lowering his DCF-based target price to US$150, he views management guidance as conservative and continues to see upside, justifying a Buy stance.
In another report released today, DBS also maintained a Buy rating on the stock with a $151.00 price target.