11:20 AM EDT, 05/07/2024 (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:

Our target price of USD67 (from USD62) is 28x 2024 EV/EBITDA, comparable to the peer median. We forecast revenue growth of 13%/15% in 2024/2025, driven by Shopee's increased traction in Brazil, higher monetization initiatives (e.g., enhanced service offerings for sellers), and buyer service improvements, as well as higher use cases for SeaMoney's services. Garena's revenue should also pick up in 2024 on improvements in game experiences and partnerships with artists to attract more users, in our view. We expect Sea's net margin to improve to 1.7%/2.5% in 2024/2025 (2023: 1.2%), on SeaMoney's better scale efficiency and improvements in Shopee's operating efficiency (e.g., automation in logistics operations and optimized first/last mile routing). However, amid rising e-commerce competition in Southeast Asia, we still see uncertainty around Shopee's ability to maintain profitability, which fluctuated Q/Q in 2023 due to marketing spend. We keep 2024/2025 EPADS forecasts at USD0.44/USD0.75.