Analysts have been eager to weigh in on the Technology sector with new ratings on Sea Limited (SE) and Crown Castle (CCI).
Sea Limited (SE)
Stifel Nicolaus analyst Scott Devitt reiterated a Buy rating on Sea Limited yesterday and set a price target of $16. The company’s shares closed yesterday at $12.71.
Devitt commented:
“We expect Sea to report 4Q:18 results in late February. Sea has come ahead of consensus revenue estimates for five consecutive quarters and continued Free Fire traction / an achievable bar for 4Q eCommerce growth should lead to another quarter of upside to our estimates. We expect key priorities for 2019 to be 1.) deeper monetization of the existing mobile game portfolio and additional game launches as Garena progresses with its shift to a mobile-first gaming company 2.) further eCommerce GMV momentum (we estimate ~$14B in GMV in 2019) and take rate growth and 3.) reducing cash burn. We expect Sea’s cash burn to gradually improve next year, exiting 2018 with what we expect to be ~$1.2B in cash, cash equivalents, and restricted cash. Below we detail our estimates and thoughts ahead of the 4Q:18 report and we reiterate our Buy rating and $16 Price Target.”
According to TipRanks.com, Devitt is a top 100 analyst with an average return of 19.4% and a 65.5% success rate. Devitt covers the Technology sector, focusing on stocks such as Paypal Holdings, Eventbrite Inc, and Alphabet Inc.
Currently, the analyst consensus on Sea Limited is a Moderate Buy with an average price target of $17.
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Crown Castle (CCI)
Oppenheimer analyst Timothy Horan maintained a Hold rating on Crown Castle yesterday. The company’s shares closed yesterday at $110.27.
Horan commented:
“AFFO per share of $1.43 grew 14% y/y, a slight miss against our 15% expected growth. Top-line growth has slowed as Crown Castle laps the Lightower acquisition. with the first quarter with full Lightower results for y/y comparisons. Total revenue grew 14.6% vs our 12.6% est. on adj EBITDA margin of 57.1% which was below our 59.3% est.. Capex spend was high at $500M versus our $418M est., signaling management’s belief that demand is strong (5G/First Responder[FirstNet]/Dish buildouts). We expect solid results over the next few years as wireless volume growth continues strong and, in addition, the company begins to cannibalize wireline data, with IoT a potential upside.”
According to TipRanks.com, Horan is a top 100 analyst with an average return of 14.5% and a 68.2% success rate. Horan covers the Technology sector, focusing on stocks such as Interxion Holding NV, Boingo Wireless Inc, and Zayo Group Holdings.
Currently, the analyst consensus on Crown Castle is a Moderate Buy with an average price target of $119, representing a 7.9% upside. In a report issued on January 14, Goldman Sachs also downgraded the stock to Hold with a $110 price target.
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