DBS Group Research has downgraded its call on technology firm Sea Group from “buy” to “hold”, at a revised target price of US$233 ($308.97). This is up US$5 or 2.2% from its previous US$228 call, analyst Sachin Mittal says in a Jan 14 note.

Explaining how the target price was arrived at, Mittal says that a fair value of US$107 per share was assigned for the e-commerce business on the basis of a 1x price to FY2021 gross merchandise value while its gaming business was priced at US$105, based on 24x DY2021 price-to-earnings ratio. 

Its digital financial services segment was priced at a fair value of US$13 per share.

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