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Investing.com - Morgan Stanley (NYSE:MS) has raised its price target on Sea Ltd. (NYSE:SE) to $215.00 from $206.00, while maintaining an Overweight rating on the stock. The company, currently trading near $176, has delivered impressive returns with a 125% gain over the past year. According to InvestingPro data, Sea maintains a "GREAT" financial health score, supported by strong fundamentals and robust growth metrics.
The firm cited Sea’s balanced approach to growth, investments, and profitability in its e-commerce (EC) division, noting these strategies are strengthening the company’s market position and competitiveness. This is reflected in the company’s strong revenue growth of nearly 34% in the last twelve months.
Morgan Stanley highlighted that Sea’s gaming division, Garena, has demonstrated surprising growth momentum, with analysts suggesting another potential spike in the third quarter.
The financial technology segment is emerging as a key driver for the bull case on the stock, according to the research note.
Morgan Stanley has reiterated Sea Ltd. as a "Top Pick" in its coverage universe, reflecting the firm’s continued confidence in the company’s overall business strategy and growth prospects.
In other recent news, Sea Ltd. has reported strong second-quarter results, with revenue and EBITDA exceeding consensus estimates by 6% across all business segments. The company’s digital entertainment arm, Garena, saw a 23% year-over-year growth in bookings, driven largely by its popular Free Fire game. Following these results, several analyst firms have adjusted their price targets for Sea Ltd. TD Cowen raised its target to $165 while maintaining a Hold rating, and Benchmark increased its target to $205, keeping a Buy rating. Jefferies also boosted its price target to $196, citing impressive growth momentum, particularly for Shopee in Brazil. Bernstein reiterated its Outperform rating, setting a target of $180 and highlighting a diversified growth strategy across multiple business lines. The firm noted that competitive pressures in the e-commerce segment have not been as severe as anticipated. These developments reflect a broader positive sentiment among analysts regarding Sea Ltd.’s performance and future prospects.
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