©Reuters.
On Thursday, Bernstein raised his price target on shares of Sea Ltd. (NYSE:SE), one of the world's largest technology companies, from $60 to $70, while maintaining an outperform rating on the stock. The company's decision follows Sea Ltd's strong rally since the start of the year, with its stock price soaring more than 50% and ranking it as one of the top performers in the global technology sector.
Despite this impressive growth, Bernstein suggests the stock hasn't received the level of attention it would normally receive. According to the company, a turnaround in Sea Ltd's narrative is pending, which could further highlight the company's potential. Latest management comments and internal memos have been cited as indicators of promising developments that could further garner investor interest.
Bernstein's analysis points out that reduced competition intensity in the e-commerce space is a positive factor for Sea (NYSE:). It is pointed out that all of these companies are increasing their sales. commission rate, this trend is likely to persist over time.
The company raised its EBITDA forecast for Sea, which resulted in a new price target of $70 based on discounted cash flow (DCF) analysis. The revised target also reflects a slight increase in long-term e-commerce margins to 1.8% of gross merchandise value (GMV), providing a more optimistic financial outlook for the company.
This article was generated with the help of AI and reviewed by an editor. Please see our Terms of Use for more information.
