During the last three months, 16 analysts shared their evaluations of Sea SE, revealing diverse outlooks from bullish to bearish.
The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 5 | 7 | 4 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 3 | 1 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 2 | 5 | 4 | 0 | 0 |
Analysts have recently evaluated Sea and provided 12-month price targets. The average target is $69.12, accompanied by a high estimate of $92.00 and a low estimate of $43.00. Surpassing the previous average price target of $53.86, the current average has increased by 28.33%.
Analyzing Analyst Ratings: A Detailed Breakdown
The analysis of recent analyst actions sheds light on the perception of Sea by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Scott Devitt | Wedbush | Maintains | Outperform | $72.00 | - |
| Fawne Jiang | Benchmark | Maintains | Buy | $78.00 | - |
| Jiong Shao | Barclays | Raises | Overweight | $85.00 | $68.00 |
| Rob Sanderson | Loop Capital | Raises | Buy | $92.00 | $59.00 |
| Sachin Salgaonkar | B of A Securities | Raises | Buy | $70.00 | $62.00 |
| Venugopal Garre | Bernstein | Raises | Outperform | $70.00 | $60.00 |
| Mark Goodridge | Morgan Stanley | Raises | Equal-Weight | $65.00 | $47.00 |
| John Blackledge | TD Cowen | Raises | Market Perform | $52.00 | $40.00 |
| Piyush Choudhary | HSBC | Raises | Buy | $76.00 | $70.00 |
| Fawne Jiang | Benchmark | Raises | Buy | $78.00 | $65.00 |
| Jiong Shao | Barclays | Raises | Overweight | $68.00 | $59.00 |
| Sachin Salgaonkar | B of A Securities | Raises | Neutral | $55.00 | $46.00 |
| Scott Devitt | Wedbush | Raises | Outperform | $72.00 | $45.00 |
| Ranjan Sharma | JP Morgan | Raises | Overweight | $70.00 | $43.00 |
| Venugopal Garre | Bernstein | Raises | Outperform | $60.00 | $50.00 |
| Ranjan Sharma | JP Morgan | Raises | Neutral | $43.00 | $40.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Sea. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Sea compared to the broader market.
- Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Sea's stock. This comparison reveals trends in analysts' expectations over time.
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Sea's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
Stay up to date on Sea analyst ratings.
Unveiling the Story Behind Sea
Sea operates Southeast Asia's largest e-commerce company, Shopee, in terms of gross merchandise value and number of transactions. Sea started as a gaming business, Garena, but in 2015 expanded into e-commerce, which is now the main growth driver. Shopee is a hybrid C2C and B2C marketplace platform operating in eight core markets. Indonesia accounts for 35% of GMV, with the rest split mainly among Taiwan, Vietnam, Thailand, Malaysia, and the Philippines. For Garena, Free Fire was the most downloaded game in January 2022 and accounted for 74% of gaming revenue in 2021. Sea's third business, SeaMoney, provides mostly credit lending.
Sea: Delving into Financials
Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.
Positive Revenue Trend: Examining Sea's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 4.78% as of 31 December, 2023, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Communication Services sector.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -3.03%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): Sea's ROE excels beyond industry benchmarks, reaching -1.68%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Sea's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -0.59%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: Sea's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.68.
Analyst Ratings: Simplified
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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