Tech stocks continue to profit from Covid-19 lockdown measures, as SEA Ltd reported strong adjusted revenue growth of 93.4% y-o-y and 40.8% q-o-q. Despite still forecasting a net loss of  US$1.418 billion ($1.94 billion) in December 2020, CGS-CIMB analysts Ngoh Yi Sin and Darren Ong have maintained their “buy” call with a target price of US$158.20 up from US$152. 

The results were ahead of the analysts’ full year forecasts -- corroborated by Bloomberg -- following strong growth in SEA’s digital entertainment (Garena) and ecommerce (Shopee) units. The counter’s EBITDA of US$8 million beat Ngoh and Ong’s forecast of an US$59 million EBITDA loss.

“SEA made no changes to its earlier FY20 guidance of US$1.9 billion-2.0 billion gaming revenue and US$1.7 billion-1.8 billion ecommerce revenue, but we note that during its briefing call, management seemed confident of outperforming these targets,” remark the analysts. 

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