Bank of America has revised its earnings per share forecast for Sea Limited (SE) upward while reaffirming a Buy rating, reflecting sustained confidence in the company’s performance. The move underscores growing optimism in Southeast Asia’s digital economy and Sea’s leadership in gaming and e-commerce.
- BofA raised Sea Limited’s 2026 EPS forecast to $1.45 from $1.32
- Buy rating remains unchanged, reflecting confidence in fundamentals
- Q4 2025 e-commerce revenue grew 24% YoY
- Gaming revenue increased 17% YoY in Q4 2025
- Adjusted EBITDA margin improved to 18.7% in Q4 2025
- Active users on Shopee rose 39% year-over-year
Bank of America has raised its earnings per share (EPS) forecast for Sea Limited (SE) to $1.45 for fiscal year 2026, up from a prior estimate of $1.32, while maintaining its Buy rating on the stock. This adjustment reflects improved visibility into Sea’s core gaming segment and its digital commerce platform, Shopee, particularly in key markets like Indonesia, Thailand, and Vietnam. The revision comes amid strong revenue momentum in the region, with Sea’s e-commerce revenue growing 24% year-over-year in Q4 2025, driven by increased user engagement and expanding seller base. The company’s gaming division delivered a 17% increase in revenue, supported by successful launches of new titles and continued monetization in mature markets. Sea Limited’s adjusted EBITDA margin expanded to 18.7% in the last quarter, up from 16.3% in the same period of 2024, signaling improved operational efficiency. The company also reported a 39% rise in active users on its digital commerce platforms, with user retention in Southeast Asia trending above industry averages. The revised forecast and sustained Buy rating are likely to influence investor positioning, particularly among funds focused on emerging market tech plays. Traders may react to the upgrade with increased buying activity, especially ahead of Sea’s upcoming earnings release in March 2026.