Sea (SE) Price Target Cut as Growth Investments Increase

Group 1 - Sea Limited (NYSE:SE) is considered one of the best rebound stocks to buy currently, with Morgan Stanley reducing its price target to $121 from $173 while maintaining an Overweight rating [1] - Morgan Stanley predicts that Sea's top-line growth will remain solid, but reinvestments in e-commerce and digital financial services will significantly slow down EBITDA growth in 2026 [1] - BofA Securities has also reduced its price target for Sea Limited to $125 from $150 while keeping a Buy rating, and has decreased its earnings per share expectations for fiscal 2026-2028 by 17% to 22% due to lower margins and increased taxes [3] Group 2 - Sea Limited operates in three main business segments: Digital Entertainment, E-commerce, and Digital Financial Services [4] - Despite uncertainties regarding investment scope, Morgan Stanley anticipates that EBITDA will accelerate in 2027 [3] - BofA has lowered its e-commerce EBITDA multiple to 20x from 30x due to slower growth estimates [3]