Update shared on 01 Nov 2025
Fair value Decreased 3.90%Analysts have adjusted their price target for Sea Limited slightly downward from $204.64 to $196.66. They cited ongoing improvements in revenue growth, alongside a more cautious outlook on profit margins and updated market conditions.
Analyst Commentary
Recent analyst research on Sea Limited reflects a mix of optimism and caution. Some have raised their price targets and improved their ratings, while others note persistent challenges and risks in the company’s operating environment.
Bullish Takeaways- Bullish analysts highlight strong momentum across Sea Limited's core businesses and cite growth trends that are not yet fully reflected in the current share price.
- Recent checks suggest revenue gains are being driven by increased engagement, successful assortment strategies, and expanding live streaming offerings in key markets.
- Boosts in price targets are also attributed to the company's fintech segment, which is viewed as providing valuable flexibility and potential upside for future growth.
- Solid results across business segments and positive commentary on competitive positioning have reinforced confidence in Sea Limited’s execution and long-term prospects.
- Bearish analysts remain cautious regarding profit margins and emphasize that increased revenue growth has yet to translate into consistent bottom-line improvements.
- Competitive pressures, particularly from regional e-commerce rivals, persist and could challenge Sea’s ability to sustain market share gains.
- There are concerns that recent increases in commissions, while beneficial to earnings per share, may not be sustainable over time and could impact user engagement or platform growth.
Valuation Changes
- The consensus analyst price target has decreased slightly, moving from $204.64 to $196.66.
- The discount rate has risen marginally, from 7.81% to 7.84%.
- The revenue growth expectation has increased modestly, from 19.75% to 20.07%.
- The net profit margin estimate has declined somewhat, from 14.07% to 13.74%.
- The future P/E ratio forecast has dropped slightly, from 36.75x to 35.92x.
Disclaimer
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