BofA Lifts Sea Limited (SE) Price Target, Cites Strong Growth Momentum

Sea Limited (NYSE:SE) ranks among the stocks with the best earnings growth for the next 5 years. On October 16, Bank of America upgraded Sea Limited (NYSE:SE) to Buy from Neutral and increased its price target to $215 from $206, noting stronger-than-expected momentum in gaming and e-commerce, with fintech offering further upside.

Recent gains in ad yields and commissions have contributed to Shopee’s growing gross merchandise volume, and the platform is also gaining market share in Brazil thanks to its cheaper prices and quicker delivery.

Free Fire has also gained more traction, with growth expected to be sustained by new partnerships and expansion into emerging markets.

From on-platform payments to off-platform services and secured loans, Sea’s fintech division is growing in markets like Brazil. If loan growth can be accomplished without increasing non-performing assets, BofA views this area as an optional upside driver.

​Sea Limited (NYSE:SE) is a leading internet and technology company based in Singapore. It operates through three main business segments, including Digital Entertainment, E-commerce, and Digital Financial Services.

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Disclosure: None. This article is originally published at Insider Monkey.