Jefferies positive on long-term outlook for Australia's Seek Ltd

SEEK

04/04/2023 23:36

** Jefferies say Australia's employment services provider
Seek Ltd's  SEK.AX  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 
    ** Brokerage adds even with slight downgrade to FY23 revenue
guidance by A$15 mln, FY23 EBITDA and net profit after tax
(NPAT) remain unchanged due to cost initiatives 
    ** 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 
    ** Brokerage Morningstar also maintains its fair value
estimate at A$22.80 per share for SEK 
    ** 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 15.6% so far this year, as of last close 
    



($1 = 1.4810 Australian dollars)

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