Analysts Adjust Targets as Sea Limited (SE) Expands E‑Commerce and Fintech

Sea Limited (NYSE:SE) is one of the champion overseas stocks to bargain close now. On February 11, Morgan Stanley expert Divya Gangahar Kothiyal lowered the 12-month terms people connected Sea Limited (NYSE:SE) to $173 from $209 portion maintaining an Overweight rating.

Kothiyal expects Sea to absorption connected operational investments aimed astatine expanding standard and strengthening its presumption arsenic e-commerce evolves with artificial intelligence. Also, the expert projects Sea’s e-commerce gross merchandise worth (GMV) maturation volition transcend 20% successful 2026 connected a larger base. This, said Kothiyal, aligns with gross maturation trends seen implicit the anterior year. He besides believes that Sea’s concern markets specified arsenic Brazil and rising penetration successful ASEAN should enactment longer-term growth.

Separately, connected February 9, BofA Securities chopped its 12-month terms people connected Sea’s shares to $150 from $182, and maintained a Buy rating. BofA attributed the terms people accommodation to expected unit connected Sea’s e-commerce margins.

BofA expects Sea’s e-commerce GMV to turn 26% twelvemonth implicit year, and the quarterly betterment successful take-rate to 13.7%. Also, the steadfast forecasts that e-commerce EBITDA margins volition diminution to 0.50% from 0.6% successful the anterior quarter.

In Sea’s fintech conception (Monee), BofA models 55% twelvemonth implicit twelvemonth topline growth. However, the analysts expect that EBITDA margins volition diminution by 309 ground points 4th implicit 4th owed to higher income and selling expenses and involvement output fluctuations. For Sea’s gaming division, BofA expects 4th fourth results to normalize aft a beardown 3rd quarter. The steadfast projects currency revenues to autumn 13% 4th implicit 4th and EBITDA margins successful the 55-57% range.

Sea Limited (NYSE:SE) is different Singaporean institution successful this list. It operates 3 large integer businesses crossed Southeast Asia and beyond: Shopee (e-commerce), Garena (digital entertainment), and SeaMoney (digital fiscal services). Shopee is 1 of the region’s largest online marketplaces, Garena distributes fashionable online games including Free Fire, and SeaMoney provides mobile wallet and outgo solutions.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.