DBS analyst Sachin Mittal is positive on the group’s e-commerce segment, as there are drivers pointing to higher visibility for profits. Sea has guided for high-teens gross merchandise value (GMV) growth in FY2024 and e-commerce turning adjusted Ebitda positive in 2HFY2024. Management sees healthy growth in GMV, as well as stable competition in the e-commerce business in 1QFY2024 despite Tokopedia and TikTok Shop merging in December 2023.
Analysts at DBS Group Research and OCBC Investment Research have both kept their “buy” calls on digital entertainment, e-commerce, and digital financial service company, Sea, following its 4QFY2023 ended Dec 31, 2023, results. Sea is incorporated in Singapore but listed on the New York Stock Exchange (NYSE).
While DBS has maintained its target price of US$75 ($99.81), OCBC has raised its fair value to US$80 from US$64 previously.
