UOBKH initiates 'hold' on Sea with TP of US$58.77

UOB Kay Hian analysts John Cheong, Jacquelyn Yow and Heidi Mo have initiated coverage on Sea Limited with a “hold” call and target price of US$58.77 ($79.21).

In their note, the analysts point out that Sea’s share price has recovered after its 3QFY2022 ended Sept 30 results announcement with a narrower net loss. Despite this, they remain doubtful that the company’s cost rationalising exercise could continue to improve profitability with slower growth from the digital entertainment and e-commerce segments.