On Thursday, Bernstein increased the price target for shares of Sea Ltd (NYSE:SE), a leading global technology company, from $60 to $70, while maintaining an Outperform rating on the stock. The firm's decision follows Sea Ltd's significant year-to-date rise, with the company's shares surging over 50% and ranking as one of the top performers in the global tech sector.
Despite this impressive growth, Bernstein suggests that the stock has not garnered the level of attention it might typically receive. According to the firm, a narrative shift for Sea Ltd is pending, which could further highlight the company's potential. The latest management commentary and internal memos are cited as indicators of promising developments that could attract more investor interest.
Bernstein's analysis points to a decrease in competitive intensity within the e-commerce space as a positive factor for Sea Ltd. (NYSE:SE) The analyst notes that major regional e-commerce players, including Shopee, Lazada, and Tiktokshop, have all increased their commission rates, a trend that might sustain over time.
The firm has raised its EBITDA estimates for Sea Ltd, leading to the new price target of $70, which is rooted in a discounted cash flow (DCF) analysis. The revised target also reflects a slight increase in the long-term e-commerce margins to 1.8% of gross merchandise value (GMV), providing a more optimistic financial outlook for the company.
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