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.

“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.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook