On Tuesday, Morgan Stanley reaffirmed its overweight rating on Sea Ltd (NYNYSE:SE:SE) with a consistent price target of $70.00.
The firm's stance remains positive following the company's first-quarter earnings, which exceeded both Morgan Stanley's and consensus estimates.
The adjusted EBITDA reported by Sea Ltd for 1Q24 reached $401 million, surpassing Morgan Stanley's projection of $267 million and the consensus figure of $240 million.
Sea Ltd's revenue for the quarter was also strong, coming in at $3.8 billion, marking a 28% increase year-over-year and outpacing the consensus by 3%. This robust financial performance is expected to influence the stock price favorably, said Morgan Stanley.
InvestingPro Insights
Sea Ltd's (NYSE:SE) financial health is further underscored by the latest metrics from InvestingPro. With a market capitalization of $37.02 billion, the company is demonstrating substantial market presence. The high P/E ratio, which stands at 266.64, indicates that investors are willing to pay a premium for the company's earnings, reflecting optimism about its future growth. This is supported by the adjusted P/E ratio for the last twelve months as of Q4 2023, which has been reported at 127.11, still high but indicating a more favorable earnings perspective.
InvestingPro Tips suggest that Sea Ltd holds more cash than debt on its balance sheet and the net income is expected to grow this year. These factors, combined with the fact that 3 analysts have revised their earnings upwards for the upcoming period, provide a strong case for the company's financial stability and potential for future growth. Additionally, the company's liquid assets exceeding short-term obligations underscore its financial resilience.
For those looking to delve deeper into Sea Ltd's financials and future prospects, InvestingPro offers additional insights. There are over 10 additional InvestingPro Tips available, which could help investors make more informed decisions. As a special offer, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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