Sea shares edge lower after cut to Neutral at BofA on slowing growth

Sea (NYSE:SE) stock slips 1.4% in pre-market trading after Bank of America analyst Sachin Salgaonkar downgrades the stock to a Neutral rating from a Buy. Recall on Tuesday that shares of SE fell nearly 7% following worse-than-expected loss in Q3. In addition, Sea (SE) kept gaming guidance unchanged, which implies slowing growth in Q4, Salgankar writes in a note to clients. The analyst sees a balanced risk/reward for the stock; shares climb 85% Y/Y. "We cut our gaming revenue estimates to factor in a slowdown and increase e-com losses as we factor increasing cash-burn," the analyst notes. Lowers full-year 2022 loss per share estimate to $5.72 and 2023 to $4.45 per share. "Consensus is yet to factor in rising losses in the medium term based on expansion into new markets in Europe/India." The Neutral rating agrees the Neutral Quant Rating, with the best factor grade in Momentum and the worst in Valuation. However, the Neutral rating