Hedge funds cut NFLX, keep big bets on MSFT, AMZN, add NVDA
On Wednesday, Bernstein SocGen Group signaled confidence in Sea Ltd (NYNYSE:SE: SE), raising its price target from $130.00 to $145.00 and maintaining an Outperform rating. The firm’s analysts highlighted the company’s impressive performance in the fourth quarter, indicating a robust ecommerce strategy and significant growth in its fintech vertical. The stock, currently trading near its 52-week high of $139.18, has delivered an exceptional 137% return over the past year, according to InvestingPro data.
Sea Ltd’s recent quarter demonstrated a consolidation within the industry, with the company gaining market share despite a high base. This success has been partly attributed to its competitive edge against rivals like TikTok. The company’s fintech segment, in particular, has seen remarkable growth, with its loan book expanding to $5 billion and profits reaching approximately $850 million on an annualized basis. The company’s overall revenue growth stands at 28.75% over the last twelve months, with a market capitalization of $76 billion and EBITDA of $1.88 billion.
The analysts at Bernstein SocGen Group believe there is further potential for value creation as Sea Ltd diversifies its loan book across different regions and products, including off-app offerings. The management team at Sea Ltd has expressed a bullish outlook, forecasting over 20% growth in Gross Merchandise Value (GMV) in ecommerce, double-digit growth in gaming, and a fintech loan book growth that is expected to surpass ecommerce GMV growth in the calendar year 2025. InvestingPro analysis reveals 15+ additional investment insights and a comprehensive Fair Value assessment for SE, available exclusively to subscribers.
In light of the strong momentum and positive expectations, Bernstein has increased its EBITDA estimates for Sea Ltd by 8% over the calendar years 2025-26. The raised price target to $145 reflects the firm’s belief in Sea Ltd’s capacity to outperform in the market. While trading at a high P/E ratio of 166.88, the company maintains a GOOD Financial Health Score of 2.86 according to InvestingPro’s comprehensive analysis.
In other recent news, Sea Ltd reported a 37% year-over-year increase in revenue for the fourth quarter of 2024, reaching $5 billion. The company also achieved a net income of $448 million for the full year, a significant rise from $163 million in 2023. Despite missing earnings per share expectations, Sea Ltd surpassed revenue forecasts, which led to a positive market response. Jefferies raised its price target for Sea Ltd to $157, maintaining a Buy rating due to a strong outlook. This adjustment follows Shopee’s impressive results and guidance for 2025, which exceeded analyst expectations. The company’s digital financial services and gaming segments are anticipated to continue growing, with Shopee’s GMV expected to increase by approximately 20% in 2025. Sea Ltd’s logistics service, SPX, has reportedly achieved cost efficiencies while maintaining service quality. Additionally, Sea Ltd’s gaming division, led by Free Fire, continues to exhibit solid growth, contributing to the company’s strong performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.