Analyst Venugopal Garre of Bernstein maintained a Buy rating on Sea (SE – Research Report), boosting the price target to $170.00.
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Venugopal Garre has given his Buy rating due to a combination of factors that highlight Sea Ltd’s strong performance and potential for future growth. The company has demonstrated significant progress across its segments, particularly in gaming, where a 51% growth in bookings was achieved, driven by strategic collaborations and enhanced user engagement. Additionally, Sea’s ecommerce division has shown robust margin improvements, even amidst challenging macroeconomic conditions, suggesting resilience and competitive advantage.
Furthermore, Sea’s efforts to develop in-house logistics have positively impacted service levels and cost structures, contributing to its success in the Southeast Asian market. The fintech segment is also scaling effectively, with a substantial loan book that has not compromised margins. Overall, Sea’s entrenched position in ASEAN and its ability to generate cash flow from diverse streams positions it well for long-term success, justifying the increased target price and the Buy rating.
In another report released today, DBS also maintained a Buy rating on the stock with a $204.00 price target.
SE’s price has also changed dramatically for the past six months – from $104.960 to $154.130, which is a 46.85% increase.