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Sea’s Robust Financial Performance and Growth Potential Justify Buy Rating and Increased Target Price

Sea’s Robust Financial Performance and Growth Potential Justify Buy Rating and Increased Target Price

Sea, the Consumer Cyclical sector company, was revisited by a Wall Street analyst on August 13. Analyst John Cheong from UOB Kay Hian maintained a Buy rating on the stock and has a $204.85 price target.

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John Cheong has given his Buy rating due to a combination of factors that highlight Sea’s strong financial performance and growth potential. Sea’s second-quarter results for 2025 exceeded expectations, with a revenue increase of 38% year-over-year and a significant rise in core net profit by 396% year-over-year. This impressive performance was primarily driven by the digital financial services and e-commerce segments, both of which showed improved profitability.
Furthermore, Sea’s first-half results for 2025 demonstrated robust growth, with revenue reaching $10 billion compared to $7.5 billion in the first half of 2024, and core net profit surging to $809 million from $58 million in the previous year. The company’s strong cash position, with a gross cash reserve of $10.6 billion and operating cash flow of $2.4 billion, underscores its financial health. These factors, along with a positive outlook for the second half of 2025, support the Buy rating and an increased target price of $204.85.

In another report released yesterday, DBS also maintained a Buy rating on the stock with a $204.00 price target.

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