DBS Group Research analyst Sachin Mittal has maintained “buy” on Sea Limited as he believes its securing of a digital full bank (DFB) licence by the Monetary Authority of Singapore (MAS) could accelerate its growth in the greater Southeast Asia region.

“Its licence award seems ideal because Sea has a trio of digital services; Garena (digital entertainment), Shopee (ecommerce) and SeaMoney (digital financial services). Obtaining the licence to operate as a fully-fledged digital bank would allow them to cater to the users it acquired through its three core business segments while offering banking services to the underserved segments and small and medium businesses in Singapore,” he writes in a Dec 7 report.

As such, Mittal has upped Sea’s target price to US$228 ($304.41) from US$204 previously, mainly on higher valuation for digital financial services.

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