Australia's Seek jumps as brokers upgrade stock

SEEK

05/04/2023 02:19

(Adds Macquaire Group and UBS ratings, stock moves)
    ** Shares of Australian employment services provider Seek
Ltd  SEK.AX  rise as much as 3.7% to A$24.860, their biggest
intraday pct gain since Feb. 2
    ** Jefferies say SEK's revenue target of A$2.0 bln ($1.35
bln) in FY28 with EBITDA margins above 50% is "quite
conservative" given growth prospects in ANZ and Asia 
    ** On Tuesday, SEK announced cuts to its full-year revenue
outlook to A$1.24 bln ($845.48 mln) from previous revenue
guidance of A$1.26 bln due to continued moderation in volumes
for job advertisements 
    ** Jefferies says SEK's expectation to grow revenue by
double digits in Asia from now to FY28 is "achievable"; remains
"buy" and retains price target of A$27.33 
    ** Another brokerage Macquaire increases PT to A$32.5 from
A$23.5; upgrades rating to "outperform" from "neutral"
    ** Brokerage UBS reiterates "buy" rating; raises PT to
A$27.70 from A$27.20 
    ** Stock posts its highest since Feb. 16
    ** Ten of 13 analysts rate the stock "buy" or higher, two
"hold" and one "sell"; their median PT is A$27.33 – Refinitiv
data 
    ** Stock up 14.5% so far this year, as of last close 
    
($1 = 1.4810 Australian dollars)

 (Reporting by Udbhav Krishna P in Bengaluru)
 ((UdbhavKrishna.P@thomsonreuters.com;))