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Research Alert: CFRA Keeps Buy Opinion On Adss Of Sea Ltd.
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Research Alert: CFRA Keeps Buy Opinion On Adss Of Sea Ltd.
Aug 13, 2025 7:37 AM

10:05 AM EDT, 08/13/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our target price to USD200 from USD188, 34x 2025 EV/EBITDA (peer average: 14x), reflecting our projected above-peer two-year EPADS CAGR of 238% in 2025. We forecast revenue growth of 24%/20% in 2025/2026, driven by improved price competitiveness and enhanced buyer services at Shopee, growing loan book at Monee, and increased user engagement at Garena (supported by content updates, high-profile collaborations, and content localization). We project Sea's net margin to expand to 8.5%/9.1% in 2025/2026 (2024: 2.6%), driven by Shopee's stronger Brazil performance, improving live-streaming economics, and enhanced operating efficiency through automation. Monee's rising scale efficiency and Garena's prudent spending will further support the margin, in our view. We think Sea's steady net margin improvements to 8.0% in 1H 2025 from 2.2% in Q2 2024, along with the strong revenue growth of +34% Y/Y in 1H 2025, affirms a sustainable path to earnings growth. We keep our 2025/2026 EPADS forecasts unchanged.

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