Update shared on 01 Dec 2025
Fair value Decreased 0.27%Analysts have slightly lowered their price target for Sea Limited to approximately $192 per share, citing continued revenue strength across all business segments and recent share price movement as primary factors supporting their updated outlook.
Analyst Commentary
Recent Street research on Sea Limited reflects a range of perspectives, highlighting both confidence in the company's business execution and areas of lingering caution regarding profitability and near-term industry challenges. Analysts have updated their ratings and price targets based on performance in the latest quarterly report, revenue momentum across segments, and recent share price corrections.
Bullish Takeaways- Bullish analysts have upgraded Sea Limited to Buy in response to third-quarter results. They note sustained momentum across e-commerce, gaming, and fintech segments, which supports upward revisions to revenue estimates for the next two fiscal years.
- Several analysts indicate that the company's market-leading position, especially in e-commerce and digital entertainment, justifies continued investment to support long-term growth, even if margins remain flat in the near term.
- Upward revisions to price targets, in some cases significantly, have been attributed to the combination of solid quarterly performance and the recent pullback in share price. This suggests the current valuation could present an attractive entry point for investors.
- Bullish commentary also cites strong momentum in Sea's fintech operations. Some analysts highlight this segment as a source of future optionality and potential upside.
- Bearish analysts express caution about profitability trends. While revenue continues to beat expectations, recent quarters have seen margin pressures due to increased growth investments.
- Some price target downgrades reflect concerns over short-term earnings stability, particularly as the company maintains high investment levels to secure its market position.
- Analysts taking a more cautious stance point to the need for sustained execution and improved operating leverage, warning that future growth assumptions may already be factored into current share price levels.
What's in the News
- The Board of Directors of Sea Limited has authorized a buyback plan on November 17, 2025 (Key Developments).
- Sea Limited (NYSE:SE) announces a share repurchase program to buy back up to $1,000 million worth of its American depositary shares (Key Developments).
Valuation Changes
- Consensus Analyst Price Target: Lowered slightly from $192.68 to $192.17 per share.
- Discount Rate: Decreased marginally from 8.11% to 8.10%.
- Revenue Growth: Increased modestly from 19.48% to 19.53%.
- Net Profit Margin: Decreased slightly from 12.78% to 12.72%.
- Future P/E: Lowered from 32.49x to 32.08x.
Disclaimer
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