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Investing.com - Bernstein SocGen Group raised its price target on Sea Ltd. (NYSE:SE) to $180.00 from $170.00 on Monday, while maintaining an Outperform rating on the stock. The company’s shares, currently trading at $160.33, have delivered an impressive 141% return over the past year, according to InvestingPro data.
The firm cited Sea Ltd’s "remarkable transformation," noting that the company’s stock has increased fourfold over the past 18 months due to strong execution. Bernstein’s analysis indicates that concerns about heightened competitive intensity in Sea’s e-commerce division have not materialized. This success is reflected in the company’s robust 30.3% revenue growth and "GREAT" financial health score, as reported by InvestingPro.
According to Bernstein, Sea Ltd continues to consolidate market share, with gross merchandise value (GMV) likely growing at approximately 20%. The company’s monthly active users are also increasing, while EBITDA-to-GMV margins are expected to remain around 0.8%, with a possible modest sequential dip due to seasonality.
The research firm noted that Sea Ltd is prioritizing reinvestment of operating gains and commission increases into growth initiatives rather than maximizing margins, which helps protect its dominant market position. Bernstein characterized the second quarter as "stable" for the company.
Bernstein has raised its EBITDA estimates for Sea Ltd for calendar years 2025-2028 by 7-8%, driven by improvements in the company’s fintech and gaming segments. The new $180 price target is based on discounted cash flow analysis.
In other recent news, Sea Ltd has seen several adjustments to its stock price targets from various analyst firms, reflecting its diverse performance across business segments. Jefferies increased its price target to $187, maintaining a Buy rating, with expectations of solid execution in the second quarter. Similarly, Loop Capital raised its target to $190, also with a Buy rating, citing improvements in Sea’s ecommerce platform, Shopee, and potential earnings growth. Benchmark adjusted its price target to $180, highlighting robust growth across segments despite missing some revenue projections due to deferred gaming revenue.
Meanwhile, Phillip Securities downgraded Sea Ltd’s stock rating from Accumulate to Neutral, though it raised the price target to $160, acknowledging the company’s growth prospects in digital financial services and entertainment. TD Cowen increased its price target to $140 while maintaining a Hold rating, following strong first-quarter results driven by a surge in Garena’s bookings. Sea Ltd’s digital entertainment arm, Garena, saw a 73% year-over-year increase in bookings, significantly outperforming expectations. Despite some revenue shortfalls in Shopee, Sea’s financial technology segment, Monee, experienced a 67% year-over-year revenue growth. These developments reflect a mixed but promising outlook for Sea Ltd across its various business operations.
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