Mittal says he also likes Indonesia-listed Bukalapak for its “rock-bottom valuation”. To the analyst, he sees the counter experiencing a potential re-rating, seeing an adjusted ebitda breakeven in nine to 12 months.
DBS Group Research analyst Sachin Mittal has expressed that he prefers Sea Limited among the Internet sector stocks for its fundamentals and for its re-rating after its ebitda breakeven for the 4QFY2022 ended Dec 31, 2022.
“[We] argue for a 50%-60% premium over Grab (versus a 35%-40% premium earlier,” says the analyst. “However, Sea is trading at 2.7x 12-month forward adjsted revenue vs 1.5x for Grab implying [an estimated] 80% premium.”
