Stifel Nicolaus analyst Scott Devitt reiterated a Buy rating on Sea Limited (SE) today and set a price target of $45. The company’s shares closed last Monday at $33.02.
Devitt said:
“We continue to view today’s report as a solid quarter against elevated expectations. 2H game billings guidance appears conservative while eCommerce marketplace monetization ramps ahead of our expectations. Sustained profitability trends at Garena (adj. EBITDA +5x y/y) and better adj. EBITDA loss per order for Shopee suggest Sea may be on track to reach breakeven adj. EBITDA in 2020. Our Target Price moves to $45 from $44 and we reiterate our Buy rating on shares of SE. the full 2Q:19 results recap, please see our note, Sea 2Q:19 Quick Look. 2H revenue estimates rising across gaming and eCommerce. We believe consolidated adj. EBITDA could reach breakeven in 2020. We are increasing our 2H gaming billings estimates by +8% to $857mm and our 2H eCommerce adj. revenue estimates by +26%. Our 2020E gaming billings rise +8% to $1.74B and our 2020E eCommerce adj.”
According to TipRanks.com, Devitt is a top 100 analyst with an average return of 20.4% and a 67.4% success rate. Devitt covers the Technology sector, focusing on stocks such as Uber Technologies Inc, Eventbrite Inc, and Alphabet Inc.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Sea Limited with a $43.78 average price target, which is a 36.8% upside from current levels. In a report issued on August 6, CLSA also downgraded the stock to Buy with a $39.10 price target.
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The company has a one-year high of $38 and a one-year low of $10.52. Currently, Sea Limited has an average volume of 3.62M.
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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.
