Sea Ltd.'s gaming revenue might have further to grow, thanks to strong user engagement in Latin America and a growing user base in India, Daiwa Capital says. Another bright spot is the company's digital-payment service, SeaMoney, where a higher payment volume should bode well for Sea's valuation in the longer run. Daiwa predicts the digital-payment-service space "will become one of the key battlefields in Southeast Asia in the next one to two years." Noting Sea's solid top-line growth in 1Q, Daiwa raises its adjusted revenue estimates for the Singapore-based company by 5%-6% for 2021-23. It increases the stock's target price to $300 from $290 and keeps a buy rating. Sea last traded at $226.66.
clarence.leong@wsj.com
(END) Dow Jones Newswires
May 20, 2021 06:49 ET (10:49 GMT)
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