UPDATE: Sea Ltd. (SE) PT Lowered to $195 at Goldman Sachs

Goldman Sachs analyst Piyush Mubayi lowered the price target on Sea Ltd. (NYSE: SE) to $195.00 (from $300.00) while maintaining a Buy rating.

The analyst comments "We remain positive on Sea Ltd. on Shopee's stabilizing growth post reopening and improving monetization, as it guides for break-even in its core ASEAN + TW markets in 2022E (94% of Shopee GMV in 4Q21). Based on 4Q21 earnings, management guidance and our trackers, we adjust our FY22-23E group GAAP revenue forecast by -4% to 0% and now expect group EBITDA break-even in 2024E. Our Shopee valuation remains largely unchanged at $167/sh or 86% of our SOTP, but we cut Garena's valuation by 44% to $37/share, lower SeaMoney by 34% to $39/sh and raise the holding company discount to -25% (from 10%) on the Group's cash drag in the current rising interest rate environment and the absence of FCF multiple support. Consequently, our 12-month SOTP-based TP is revised downwards by 35% to US$195, for 54% potential upside."

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