UPDATE: CIMB Starts Sea Ltd. (SE) at Add, Sees Co as Digital proxy to ASEAN
(updating comment)
CIMB analyst Ngoh Yi Sin initiates coverage on Sea Ltd. (NYSE: SE) with a Add rating and a price target of $152.00.
The analyst comments "SEA Ltd (SE) is a unique proxy to GSEA’s digital economy with exposure to online gaming (Garena), e-commerce (Shopee) and digital financial services (SeaMoney). It has built on its mobile-led strategy, strong content localisation capabilities and Tencent backing to gain GMV market share and diversify into new markets (India, LATAM). Initiate coverage with Add and SOP-based TP of US$152.00. We value Garena (33% of SOP) at 29x FY21F P/E in line with peers, Shopee (61% of SOP) at 1.1x FY21F GMV, 40% discount to peers and SeaMoney at 0.4x FY21F TPV (sector mean). Re-rating catalysts: more gaming hits, sustained e-commerce growth and digital banking success in Singapore. Downside risks:
unfavourable regulatory changes and rising competition."
For an analyst ratings summary and ratings history on Sea Ltd. click here. For more ratings news on Sea Ltd. click here.
Shares of Sea Ltd. closed at $128.00 yesterday.