Analysts Adjust Targets as Sea Limited (SE) Expands E-Commerce and Fintech

Sea Limited (NYSE:SE) is one of the best foreign stocks to buy right now. On February 11, Morgan Stanley analyst Divya Gangahar Kothiyal lowered the 12-month price target on Sea Limited (NYSE:SE) to $173 from $209 while maintaining an Overweight rating.

Kothiyal expects Sea to focus on operational investments aimed at expanding scale and strengthening its position as e-commerce evolves with artificial intelligence. Also, the analyst projects Sea’s e-commerce gross merchandise value (GMV) growth will exceed 20% in 2026 on a larger base. This, said Kothiyal, aligns with revenue growth trends seen over the prior year. He also believes that Sea’s investment markets such as Brazil and rising penetration in ASEAN should support longer-term growth.

Separately, on February 9, BofA Securities cut its 12-month price target on Sea’s shares to $150 from $182, and maintained a Buy rating. BofA attributed the price target adjustment to expected pressure on Sea’s e-commerce margins.

BofA expects Sea’s e-commerce GMV to grow 26% year over year, and the quarterly improvement in take-rate to 13.7%. Also, the firm forecasts that e-commerce EBITDA margins will decline to 0.50% from 0.6% in the prior quarter.

In Sea’s fintech segment (Monee), BofA models 55% year over year topline growth. However, the analysts anticipate that EBITDA margins will decline by 309 basis points quarter over quarter due to higher sales and marketing expenses and interest yield fluctuations. For Sea’s gaming division, BofA expects fourth quarter results to normalize after a strong third quarter. The firm projects cash revenues to fall 13% quarter over quarter and EBITDA margins in the 55-57% range.

Sea Limited (NYSE:SE) is another Singaporean company in this list. It operates three major digital businesses across Southeast Asia and beyond: Shopee (e-commerce), Garena (digital entertainment), and SeaMoney (digital financial services). Shopee is one of the region’s largest online marketplaces, Garena distributes popular online games including Free Fire, and SeaMoney provides mobile wallet and payment solutions.

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