Sea Limited Price Targets Cut to $173 and $150 with Growth Forecasts
Morgan Stanley cut Sea Limited’s 12-month price target to $173 from $209 while keeping an Overweight rating, anticipating over 20% e-commerce GMV growth in 2026. BofA lowered its target to $150 from $182, forecasting 26% GMV growth, 0.5% e-commerce EBITDA margin, and 55% fintech revenue expansion with margin contraction.
1. Analysts Adjust Price Targets
Morgan Stanley lowered Sea Limited’s 12-month price target to $173 from $209 and maintained an Overweight rating, while BofA cut its target to $150 from $182 and kept a Buy rating.
2. E-commerce Growth Projections
Morgan Stanley expects Sea’s e-commerce GMV to exceed 20% growth in 2026 on a larger base, and BofA forecasts 26% year-over-year GMV growth with take-rate improvement to 13.7% and e-commerce EBITDA margins sliding to 0.5%.
3. Fintech Segment Outlook
BofA projects 55% year-over-year revenue growth in the SeaMoney segment but anticipates a 309 basis-point drop in fintech EBITDA margins due to higher sales and marketing expenses and fluctuations in interest yield.
4. Gaming Division Forecast
BofA expects a normalization in Garena’s results after a strong third quarter, forecasting a 13% quarterly cash revenue decline and stable EBITDA margins in the 55%–57% range.