“We expect valuation multiples to stay elevated amid a low interest rate environment. Rising competition is another key downside risk. Re-rating catalysts are more gaming hits, faster gross merchandise value (GMV) growth and e-commerce profitability turnaround,” they add.
CGS-CIMB analysts Ngoh Yi Sin and Darren Ong are reiterating their “add” recommendation on Sea Limited with a higher target price of US$185.30 ($252.00) from US$158.20 previously as the group contains to gain “strong traction” in its gaming and e-commerce segments.
“While regulatory concerns facing US Internet companies will remain as near-term headwinds, our Raymond James (RJ) US Internet analyst believes these are largely priced in at current levels,” they write in a report dated Oct 7.
