Jefferies remains bullish on Australia's Carsales and Seek, cautious on REA

SEEK

08/02/2023 22:19

** Jefferies sees Australia's Carsales.com  CAR.AX  doing
better than the industry, while online employment marketplace
firm Seek Ltd  SEK.AX  to possibly generate higher yield
    ** Sees risk for REA Group  REA.AX , an online property
classifieds operator, as it may not be able to reduce costs fast
enough in the downturn  
    ** Brokerage says it continues to stay bullish on CAR and
SEK, but cautious on REA
    ** Carsales (PT A$26.38, Buy): Jefferies sees healthy level
of demand for used cars to benefit co, says stock is its top
pick   
    ** Seek (PT A$29.14, Buy): Brokerage expects co to start
pulling price lever, forecasts yield growth of 14% in 2H23 and
11% in 1H24
    ** REA (PT A$102.07, Underperform): Jefferies sees fall in
net property listings, among others as a downside risk for
upcoming results
    ** Seven of 14 analysts rate REA "buy" or higher, four
"hold" and three "sell" or lower; their median PT is A$126–
Refinitiv data
        ** Eight of 16 analysts rate CAR "buy" or higher, seven
"hold" and one "sell" ; their median PT is A$23.90
    ** 11 of 14 analysts rate SEK "buy" or higher and three
"sell" ; their median PT is A$27.80– Refinitiv data
    ** SEK, CAR and REA have risen 20.2%, 10.7% and 12.3%
respectively this year, as of last close
 (Reporting by Nausheen Thusoo in Bengaluru)
 ((Nausheen.Thusoo@thomsonreuters.com;))