Analysts Remain Divided Over Sea Post Q3 Results

Analyst opinions remain divided on Sea Ltd SE post Q3 results.
UBS analyst Navin Killa raised the price target to $380 from $350, implying a 22% upside, and maintained a Buy.
The analyst cites the company's "strong" Q3 results, particularly in the e-commerce segment, where gross merchandise value and revenue were up 81% and 134%, respectively.
Spending on sales and marketing remains elevated, and the gaming segment saw a slowdown.
Still, Sea Ltd should continue to benefit from adopting e-commerce and digital finance across under-penetrated regions in ASEAN and LatAm regions.
The rating contrasts with BofA analyst Sachin Salgaonkar downgraded to Neutral from Buy with a price target of $385, up from $380, implying a 23% upside.
Salgaonkar considers the risk/reward as balanced following the stock's 67% rise year-to-date.
The analyst added that the company's gaming guidance following its Q3 earnings results implied slowing Q4 growth.
Citi analyst Alicia Yap lowered the price target to $416 from $424, implying a 33% upside, and affirmed a Buy following the "solid" Q3 results.
Gaming user metrics started to resemble a normalized steady growth trend in a post-Covid environment.
The analyst believes Sea's growth momentum and monetization upside for Shopee remain intact.
Related Content: Sea Clocks ~122% Revenue Growth In Q3, Tops Consensus.
Price Action: SE shares traded lower by 5.53% at $311.66 on the last check Wednesday.

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