JPMorgan has downgraded its rating on Sea Limited (SE) to Neutral from a previous Overweight, adjusting the price target down to $135 from $160. This decision reflects the growing macroeconomic headwinds that the firm believes may restrict further positive earnings revisions for Sea.
The investment bank highlights the potential for a devaluation in Sea's stock valuation multiples given the current economic uncertainty. Consequently, JPMorgan advises investors to consider taking profits on Sea in light of these challenges.
Furthermore, JPMorgan suggests that Grab Holdings (GRAB, Financial) could exhibit more resilience to the macroeconomic environment than Sea, indicating a potential shift in focus for investors seeking stability in the sector.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 24 analysts, the average target price for Grab Holdings Ltd (GRAB, Financial) is $5.76 with a high estimate of $8.00 and a low estimate of $4.50. The average target implies an upside of 41.76% from the current price of $4.06. More detailed estimate data can be found on the Grab Holdings Ltd (GRAB) Forecast page.
Based on the consensus recommendation from 25 brokerage firms, Grab Holdings Ltd's (GRAB, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Grab Holdings Ltd (GRAB, Financial) in one year is $6.49, suggesting a upside of 59.85% from the current price of $4.06. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Grab Holdings Ltd (GRAB) Summary page.
