- Videogame publisher Sea Limited's ADRs (NYSE:SE) are up 3.4% after Credit Suisse bumped its price target to a Street high.
- That move comes despite a strong run-up in the price - the ADRs are up 416% over the past year - because it's staying constructive on long-term prospects.
- Battle-royale games stayed popular in the fourth quarter, the firm notes, and Free Fire (from Sea's Garena unit) maintained a top-five grossing rank in many markets. Meanwhile, Arena of Valor (which Garena publishes in some markets) stayed a top-10 game in Thailand and Vietnam.
- Credit Suisse says gaming revenue growth will moderate to 7.1% sequentially (it grew 31.9% in Q3) amid strong popularity for Free Fire.
- Meanwhile, on e-commerce unit Shopee, it's expecting gross merchandise volume growth of 17% quarter-over-quarter, to $10.8B due to a strong shopping season, and it sees take rate improving by 20 basis points to 6.1%.
- It's raising target price to $285 from $225, implying 18% upside.
- Street analysts are Bullish on the stock, as are Seeking Alpha authors. It has a Quant Rating of Neutral.