These Analysts Boost Their Forecasts On Sea After Q2 Results

Sea Limited SE reported mixed results for its fiscal second quarter on Tuesday.

The company posted revenue growth of 23.0% year-on-year to $3.81 billion, beating the analyst consensus estimate of $3.72 billion. EPS of 14 cents, down from 54 cents Y/Y, missed the analyst consensus estimate of 15 cents.

E-commerce and other services revenue increased 30.4% Y/Y to $3.03 billion. Adjusted EBITDA for the segment overall was a $9.2 million loss versus $150.3 million a year back. Core marketplace revenue grew 41.4% year over year to $1.8 billion. Gross orders rose 40.3% year over year. GMV was $23.3 billion, increasing by 29.1% year over year.

On Shopee's 2024 outlook, Forrest Li, Sea's Chairman and Chief Executive Officer, said, "With the strong results delivered in the first half and our outlook for the rest of the year, we expect that Shopee will become adjusted EBITDA positive from the third quarter. We are also revising up our guidance for Shopee's 2024 full year GMV growth to mid-20%."

Sea shares gained 2.6% to $76.79 on Wednesday.

• B of A Securities analyst Sachin Salgaonkar maintained Sea with a Buy and raised the price target from $77 to $84.
• Benchmark analyst Fawne Jiang maintained the stock with a Buy and raised the price target from $87 to $94.
• JP Morgan analyst Ranjan Sharma upgraded Sea from Neutral to Overweight and increased the price target from $66 to $90.
• TD Cowen analyst John Blackledge maintained the stock with a Hold and raised the price target from $64 to $69.
• Wedbush analyst Scott Devitt maintained Sea with an Outperform and raised the price target from $76 to $84.

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