Sea Ltd. stock price target raised to $165 from $135 at TD Cowen

Investing.com - TD Cowen raised its price target on Sea Ltd. (NYSE:SE) to $165 from $135 on Wednesday, while maintaining a Hold rating on the stock following the company’s second-quarter results. The stock, currently trading near $176, has delivered an impressive 132% return over the past year according to InvestingPro data.

The e-commerce and gaming company delivered solid performance with revenue and EBITDA exceeding consensus estimates by 6% across all business segments. With revenue growing at 34% year-over-year to $19.4 billion, Garena, Sea’s digital entertainment arm, reported bookings growth of 23% year-over-year, outperforming consensus by 2%, primarily driven by its Free Fire game.

Sea management raised its full-year 2025 guidance for Garena to more than 30% year-over-year growth, compared to TD Cowen’s previous estimate of 34%. The company cited strong performance in Brazil for its Shopee e-commerce platform, noting that third-quarter GMV should be similar to second-quarter levels.

The financial services segment, Monee, was also highlighted as a growth driver in management’s commentary. Based on these developments, TD Cowen raised its long-term revenue and EBITDA estimates for the company.

Despite the improved outlook and price target increase, TD Cowen maintained its Hold rating on Sea Ltd. stock, suggesting a neutral stance on the company’s current valuation.

In other recent news, Sea Ltd. has reported a strong quarterly performance, prompting several investment firms to adjust their price targets for the company. Benchmark increased its price target to $205 from $180, citing Sea Ltd.’s impressive results across its ecommerce, fintech, and gaming segments. Jefferies also raised its price target to $196 from $187, attributing the decision to robust second-quarter results and notable growth for Shopee in Brazil. Additionally, Bernstein maintained its Outperform rating with a $180 target, highlighting a diversified growth narrative across multiple business lines. Bernstein further raised its price target from $170 to $180, acknowledging Sea Ltd.’s significant transformation and strong execution over the past 18 months. Despite competitive pressures, analysts have noted that Sea Ltd. continues to show solid momentum in its operations. The company’s diversified growth strategy appears to have mitigated concerns about competition in the e-commerce sector. These developments reflect a positive outlook from analysts regarding Sea Ltd.’s future performance.

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