Bank of America Securities adjusted its outlook on Sea Limited, raising its price target for the company to $206 from $200. The firm maintained a Neutral rating on the shares, reflecting a revised valuation based on recent operational data.
The primary reason cited for the increased price target was a recent spike in commissions, which led Bank of America to raise its financial predictions for Sea Limited for fiscal years 2026 and 2027. This indicates an improvement in the monetization capabilities within the company's e-commerce segment.
The increase in commissions suggests enhanced revenue generation from Shopee's marketplace activities, contributing to a more optimistic long-term financial forecast for Sea Limited. This development highlights the company's ability to improve its take rates and profitability.
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