The Analyst Landscape: 4 Takes On Sea

In the latest quarter, 4 analysts provided ratings for Sea SE, showcasing a mix of bullish and bearish perspectives.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $114.25, along with a high estimate of $131.00 and a low estimate of $96.00. This upward trend is apparent, with the current average reflecting a 34.02% increase from the previous average price target of $85.25.

Exploring Analyst Ratings: An In-Depth Overview

The standing of Sea among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Sea. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Sea compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Sea's stock. This examination reveals shifts 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.

All You Need to Know About 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 lending and we foresee it becoming a larger part of the entire business in the long term as its loan book has grown to $3.5 billion in 2024.

Breaking Down Sea's Financial Performance

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Positive Revenue Trend: Examining Sea's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 22.97% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Communication Services sector.

Net Margin: Sea's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 2.15%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Sea's ROE stands out, surpassing industry averages. With an impressive ROE of 1.21%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Sea's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.42%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Sea's debt-to-equity ratio is below the industry average at 0.62, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyst Ratings: What Are They?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.