.png "Sea Limited (NYSE: SE)")
Stifel Nicolaus analyst Scott Devitt reiterated a Buy rating on Sea Limited (SE) today and set a price target of $44. The company’s shares closed yesterday at $25.39, close to its 52-week high of $27.20.
Devitt observed:
“We believe this is a conservative approach and we meaningfully increase our FY estimates on the back of the report. As a result, we increase our 12-month PT to $44 from $32 previously. A growing emerging markets gaming footprint, accelerating monetization across the gaming portfolio, Southeast Asia eCommerce leadership and higher revenue and margin forecasts lead us to reiterate our Buy rating. Key Points 1Q:19 highlights. Sea reported 1Q consolidated adj. revenue growth of +194% y/y to $578mm, +34% above our $432mm forecast (+36% above consensus). Sea had a consolidated adj. EBITDA loss of -$32mm (margin -5.5%), significantly better than our -$149mm (-35%) expectation and the Street’s -$147mm (-35%) forecast due Garena’s +169% y/y billings growth rate and ~69% incremental EBITDA margins.”
According to TipRanks.com, Devitt is a top 100 analyst with an average return of 21.4% and a 69.6% success rate. Devitt covers the Technology sector, focusing on stocks such as Jumia Technologies AG, Eventbrite Inc, and Alphabet Inc.
Currently, the analyst consensus on Sea Limited is a Strong Buy with an average price target of $32, which is a 26.0% upside from current levels. In a report released today, Piper Jaffray also maintained a Buy rating on the stock with a $35 price target.
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Based on Sea Limited’s latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $272 million. In comparison, last year the company had a GAAP net loss of $222 million.
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Sea Ltd. (Singapore) is an internet and mobile platform company, which engages in the provision of online gaming services. It operates through the following segments: Digital Entertainment, E-Commerce, and Digital Financial Services.
