Sea Ltd stock price target raised to $165 at Loop Capital

On Monday, Loop Capital Markets increased their price target on Sea Ltd (NYSE:SE) shares to $165, up from the previous target of $135. The firm has maintained its Buy rating on the stock. Loop Capital’s analyst, Rob Sanderson, provided a positive outlook on the company, citing significant long-term earnings potential and an attractive near-term setup across all business segments. This optimism appears well-founded, as InvestingPro data shows Sea Ltd has delivered an impressive 143% return over the past year, with revenue growing at nearly 29% in the last twelve months.

Sanderson highlighted the company’s strong position in e-commerce across Southeast Asia, noting that Sea Ltd’s market share, cost management, and service quality are defensible, and competitors have become more rational in their operations. The analyst believes that the earnings power of Sea Ltd is substantially higher than near-term forecasts, with longer-term margins potentially tripling those projected for 2026. According to InvestingPro, the company maintains strong financial health with a GREAT overall score, holding more cash than debt on its balance sheet and showing sufficient liquidity to cover short-term obligations.

The resilience of Sea Ltd’s gaming franchise was also emphasized as a key factor in the company’s steady cash flow and growth potential. The gaming sector is seen as having upside optionality that could contribute to the company’s financial strength.

Furthermore, the fintech sector in emerging markets was identified as a massive growth opportunity for Sea Ltd. Sanderson pointed out that the company’s e-commerce ecosystem serves as a valuable source of consumer data, which can enhance risk models and drive expansion in financial technology.

In summary, Loop Capital sees Sea Ltd as an attractive investment for long-term growth portfolios. The firm’s updated price target reflects confidence in the company’s ability to maintain its leading position and capitalize on opportunities within its various business segments.

In other recent news, Sea Ltd has received several updates from major analyst firms following its fourth-quarter 2024 earnings report. UBS has raised its price target for Sea Ltd to $176, maintaining a Buy rating, after the company surpassed both its and consensus estimates for earnings and provided optimistic guidance for 2025. Barclays (LON:BARC) also increased its price target to $182, citing a strong performance in Sea Ltd’s e-commerce segment, with a notable 70% EBITDA beat over consensus expectations. Meanwhile, Phillip Securities upgraded Sea Ltd’s stock rating from Reduce to Neutral, setting a new price target of $140, acknowledging the company’s 37% year-over-year revenue growth, despite an investment loss affecting profit after tax.

Benchmark analysts have also raised their price target to $150, continuing their Buy rating, as Sea Ltd exceeded expectations across all business segments and provided a positive outlook for 2025. TD Cowen adjusted its price target to $120, maintaining a Hold rating, after Sea Ltd’s revenues and EBITDA surpassed consensus estimates, driven by the strong performance of its Shopee e-commerce platform. Across these analyses, Sea Ltd’s e-commerce and digital financial services have been highlighted as significant growth drivers, with projections of continued momentum into 2025. The company’s gaming division, Garena, also shows potential for growth, despite some underperformance in recent quarters. These developments indicate a strong and diversified performance across Sea Ltd’s business segments, fostering analyst confidence in the company’s future growth trajectory.

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