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Investing.com -- Sea Limited (NYSE:SE) stock rose 2.9% in premarket trading Monday after the company announced a $1 billion share repurchase program and received an analyst upgrade.
The Singapore-based digital entertainment and e-commerce company said its board of directors has authorized the repurchase of up to $1 billion of its American depositary shares. According to the announcement, the timing and amount of share repurchases will be determined based on market conditions and other factors.
Sea Limited stated that the repurchase program "demonstrates the Company’s confidence in its long-term prospects and allows the Company to opportunistically repurchase its shares." The company may execute the buybacks through various methods, including open market purchases, privately negotiated transactions, block trades, or derivative transactions.
Adding to the positive sentiment, Phillip Securities analyst Helena Wang upgraded Sea Limited from Neutral to Buy with a price target of $170.00.
"We raised our FY25/26 revenue by 3%/4% to reflect improved growth in all three segments. We increase FY25/26 selling & marketing expense by 5% to account for the elevated investment. Our DCF target price remains unchanged at US$170, with a terminal growth rate of 4.5% and a WACC of 7.6%. We upgrade our recommendation from NEUTRAL to BUY due to recent share price movement," Wang noted.
Sea Limited operates three core businesses: Garena (digital entertainment), Shopee (e-commerce), and Monee (digital financial services), primarily serving Southeast Asia and Taiwan.
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