Sea Limited price target lowered to $70 from $90 at Bernstein

Bernstein analyst Venugopal Garre lowered the firm’s price target on Sea Limited to $70 from $90 and keeps an Outperform rating on the shares. After demonstrating large profitability and much earlier than expected, Sea has started reinvesting again. Management has announced a formal shift – reinvest to deliver growth as it gets comfortable with its cash situation. The market is unlikely to cheer in the near-term, the firm says, as profitable growth was a key focus, and unless very heavy growth is generated along with maintaining the sanctity of self-sufficiency, concerns will remain. Bernstein raises its gaming and fintech estimates but brings down overall estimates to reflect e-commerce reinvestments.