Sea Ltd stock price target raised to $187 from $180 at Jefferies

Investing.com - Jefferies has raised its price target on Sea Ltd. (NYSE:SE) to $187.00 from $180.00 while maintaining a Buy rating on the stock. The new target suggests further upside potential for Sea, which has already delivered an impressive 131% return over the past year. According to InvestingPro analysis, the stock currently trades near its Fair Value, with analysts’ targets ranging from $140 to $206.

The investment firm expects Sea Ltd. to demonstrate solid execution across all business segments in the second quarter of the year.

For the company’s e-commerce platform Shopee, Jefferies anticipates gross merchandise value (GMV) to accelerate slightly year-over-year, driven by investments in growth initiatives, enhanced user experience features like VIP programs and logistics improvements, and favorable foreign exchange impacts.

In the gaming segment, Jefferies projects solid year-over-year bookings growth thanks to the continued strength of Free Fire, though it notes a likely sequential decline due to a high comparison base in the previous quarter.

The digital financial services (DFS) division is expected to maintain rapid growth amid what Jefferies describes as underserved market demand.

In other recent news, Sea Ltd has been the focus of several analyst updates following its recent financial performance. Loop Capital Markets raised their price target for Sea Ltd to $190, citing stronger performance in the company’s e-commerce and gaming segments, particularly noting improvements in Shopee’s EBITDA margin. Benchmark also increased their price target to $180, maintaining a Buy rating, and highlighted robust growth across Sea Ltd’s various segments, despite missing some revenue projections due to deferred gaming revenue.

Phillip Securities, however, downgraded Sea Ltd’s rating from Accumulate to Neutral, setting a new price target of $160, which is still an increase from their previous target. They acknowledged growth in Sea Ltd’s digital financial services and entertainment platforms. Meanwhile, TD Cowen raised its price target to $140, citing strong first-quarter results driven by a significant increase in Garena’s bookings and overall EBITDA.

Bernstein SocGen also raised their price target to $170, maintaining an Outperform rating, and noted significant growth across Sea Ltd’s business segments. Sea Ltd’s digital entertainment arm, Garena, saw a 73% year-over-year surge in bookings, while its fintech segment, Monee, experienced a 67% revenue growth, surpassing expectations. These developments reflect a broad-based confidence in Sea Ltd’s performance and future potential.

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