Sea Ltd.'s upbeat 2025 earnings guidance is a positive surprise, HSBC Global Research analysts say in a note.
Sea expects gross merchandise value of its Shopee e-commerce platform to grow around 20% and its Garena digital entertainment arm to post double-digit growth in user base and bookings in 2025, the analysts note.
Sea's adjusted Ebitda could rise 2.6 times in three years, thanks to drivers including likely Ebitda CAGR of roughly 22% over 2024-2027 for its SeaMoney digital financial services provider, the analysts estimate. HSBC raises the target price on the American depositary receipts to $150.00 from $140.00 with an unchanged buy rating.
The ADRs closed 11% higher at $146.31 on Wednesday after a 7% rally in prior session.
Wedbush raises price target on Sea to $145 from $125, maintains outperform rating
Sea Limited price target raised to $145 from $130 at Bernstein
Sea Limited price target raised to $160 from $133 at JPMorgan
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