Bernstein SocGen Group reiterated an Outperform rating and a $170.00 price target on Sea Ltd. (NYSE:SE) on Wednesday, while raising questions about the real-world utility of the company’s agentic AI strategy. The stock is trading at $107.11, reflecting a 43% decline over the past six months, but Sea still carries a substantial market capitalization of $63.4 billion and has reported revenue growth of 36% over the last twelve months.
The analyst note focused on Sea’s recent partnerships with OpenAI and Google, which the company has positioned as part of an agentic AI initiative to automate commerce-related tasks, including purchasing items and booking travel. Bernstein characterized agentic AI as an approach that delegates specific consumer actions to automated agents rather than simply augmenting interfaces.
Bernstein raised scepticism about whether this form of automation addresses a genuine need in Sea’s core markets. The firm pointed out that in many emerging economies, relatively low labor costs leave consumers with time, and therefore automating routine commerce tasks may produce only marginal time savings. The analyst also cited data indicating that average time spent on commerce platforms is under 10 minutes, suggesting that the potential efficiency gains from agentic AI might be limited.
Beyond time-savings, Bernstein argued that the shopping experience itself holds intrinsic value for many consumers. The firm observed that after long workdays in parts of Asia, shopping can be a leisure activity and a small pleasure, and that consumers may prefer to retain that experience rather than outsource it to an automated agent. In that vein, Bernstein said it is cautious about efforts to remove minor, meaningful activities in pursuit of incremental efficiencies.
The firm further described the agentic commerce narrative as largely supply driven - a trend driven by AI builders highlighting potential end uses to support continued investment - rather than by clearly articulated consumer demand. Despite its questions about the near-term practical case for agentic AI, Bernstein concluded that Sea is unlikely to be displaced purely by AI-driven entrants.
Separately, InvestingPro analysis cited in the note suggested Sea appears undervalued at current levels, with analysts expecting the company to remain profitable and to sustain sales growth this year. The InvestingPro platform reportedly provides 15 additional ProTips for ticker SE, along with financial health scores and Fair Value analysis intended to help investors navigate recent stock volatility.
Analysts remain divided on Sea’s outlook and near-term valuation. Morgan Stanley lowered its price target on Sea to $173 from $209 while keeping an Overweight rating, referencing the company’s operational investments as e-commerce adapts to AI. BofA Securities trimmed its target to $150 from $182 and retained a Buy rating, citing anticipated pressure on e-commerce margins driven by ongoing investments in Southeast Asia, Taiwan and Brazil. Bernstein itself adjusted its prior price target to $170 from $185 but maintained the Outperform call, noting the AI-related share price decline may be excessive and that Sea could ultimately benefit from AI developments. By contrast, Maybank Kim Eng upgraded the stock from Hold to Buy while keeping a $156 price target, pointing to the recent share price correction as an attractive entry point.
These varied analyst moves underscore differing views on Sea Ltd.’s strategic positioning, the economics of its markets and how AI-driven features will influence profitability and margins going forward.
Is SE a bargain? According to the InvestingPro assessment cited by analysts, the company appears undervalued at current market levels, but investors should weigh competing analyst perspectives and the uncertain practical impact of agentic AI on consumer behaviour.