Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Jefferies raised its price target on Sea Ltd. (NYSE:SE) to $196.00 from $187.00 on Tuesday, maintaining a Buy rating following the company’s strong second-quarter performance. The stock, which has delivered an impressive 118.5% return over the past year, is currently trading near its 52-week high of $172.65.
The firm cited Sea’s "impressive set of 2Q results" as the primary reason for the increased target, noting particularly solid growth momentum for Shopee in Brazil despite competitive pressures in the region. According to InvestingPro data, Sea’s revenue grew 30.3% in the last twelve months, with a healthy gross profit margin of 44%.
According to Jefferies, Shopee’s Brazilian operations have maintained strong growth with a favorable cost structure, particularly in logistics. The firm expects the positive GMV (Gross Merchandise Value) momentum seen in the first half of 2025 to continue into the third quarter.
Jefferies also highlighted Sea’s digital entertainment segment, where bookings forecasts have been revised upward to 30% year-over-year growth in 2025, driven by content updates and IP collaborations.
The firm noted that Sea’s Digital Financial Services (DFS) division continues to maintain rapid growth with "solid progress across different regions," further supporting the overall positive outlook for the company.
In other recent news, Sea Ltd has received attention from several analyst firms, reflecting varied perspectives on its future prospects. Benchmark raised its price target for Sea Ltd to $180, highlighting strong performance across its segments, despite missing some revenue projections due to deferred gaming revenue. The company’s e-commerce sector exceeded expectations with an adjusted EBITDA of 0.9% of GMV, and its gaming division, especially the game Free Fire, showed exceptional performance. Meanwhile, Jefferies increased its price target to $187, maintaining a Buy rating, anticipating solid execution across all business segments in the coming quarter. Similarly, Loop Capital Markets raised its price target to $190, citing improvements in Sea Ltd’s e-commerce platform, Shopee, and potential long-term earnings growth.
Conversely, Phillip Securities downgraded Sea Ltd’s stock rating to Neutral from Accumulate, despite raising the price target to $160. This adjustment was driven by the stock’s recent rally, although the firm acknowledged growth prospects in the company’s digital financial services and entertainment platforms. Bernstein also raised its price target to $180, maintaining an Outperform rating, and noted the company’s remarkable transformation and strong execution. These recent developments indicate a range of analyst expectations for Sea Ltd, reflecting optimism in its various business segments.
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