By Sam Boughedda
Investing.com — Barclays analyst Jiong Shao said in a research note Thursday that he is confident in Sea Ltd (NYSE:) despite the recent sell-off that has seen its shares fall 50% so far in 2022.
Shao explained that while the company’s fiscal 2022 guidance was “clearly disappointing,” its e-commerce outlook was “solidly ahead” of expectations, and Sea is historically conservative in guidance.
He added that gaming is legacy for the company, and its future is in e-commerce and fintech.
Shao lowered the firm’s price target on Sea to $201 from $218, explaining that the company has has “enough dry powder to drive ecommerce biz despite softer cash flow from gaming.”
“We consider the current sell-off, due to weaker gaming, a buying opportunity,” concluded Shao.
Despite the positive comments, Sea shares are down 6.5% Thursday.
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