Of 32 analysts covering Sea Limited, 24 have a Buy or Strong Buy rating, while seven others have a rating of Hold. At a share price of around $57.00, the stock’s implied upside based on a median price target of $94.00 is 64.9%. At the high price target of $159.00, the upside potential is 178.9%.
Analysts expect the company to report first-quarter revenue of $3.25 billion, up 6.8% sequentially and by 10.5% year over year. EPS are pegged at $0.71, up 56.6% sequentially and far better than the year-ago loss per share of $0.66. For the full 2023 fiscal year, EPS are forecast at $2.81, well above last year’s loss per share of $1.69, on sales of $13.45 billion, up about 8.1% year over year.
The stock trades at 20.3 times expected 2023 EPS, 16.0 times estimated 2024 earnings of $3.57 and 12.6 times estimated 2025 earnings of $4.53 per share. The 52-week trading range is $40.66 to $93.70. The company does not pay a dividend, and the total shareholder return for the past year was negative 34.40%.
Tencent Music
Tencent Music Entertainment Group Inc. (NYSE: TME), China’s largest online music entertainment platform, is a subsidiary of Tencent Holdings, the owner of WeChat and an owner of more than 18% of Sea Limited stock. Over the past year, shares of Tencent Music have added slightly more than 50% to their value, even after a 25% haircut so far in 2023. The company reported subscriber growth of nearly 18% in the first quarter for a total paying customer base of 94.4 million. Tencent Music reports second-quarter earnings Tuesday morning.
Analysts remain bullish on the stock, with 17 of 25 having a Buy or Strong Buy rating, while the others rate it at Hold. At a share price of around $6.25, the potential upside based on a median price target of $9.37 is almost 50%. At the high target of $11.75, the implied upside is 88%.
Analysts expect the company to post second-quarter revenue of $1.01 billion, down 0.9% sequentially and 1.9% lower year over year. Adjusted EPS are pegged at $0.14, up 4.7% sequentially and by 16.7% year over year. For the full 2023 fiscal year, EPS are forecast at $0.53, up 23.7%, on revenue of $4.06 billion, down 1.1%.
The stock trades at a multiple of 11.9 times expected 2023 EPS, 11.1 times estimated 2024 earnings of $0.56 and 10.3 times estimated 2025 earnings of $0.60 per share. Tencent Music’s 52-week trading range is $3.14 to $9.29. The company does not pay a dividend, and total shareholder return over the past 12 months was 50.72%.
Originally published at 24/7 Wall St.
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