Jefferies trims PT on Australia's Seek on weak FY23 outlook

SEEK

16/08/2022 21:59

** Analysts at Jefferies cut the price target on Australia's
Seek Ltd  SEK.AX  after factoring in the employment marketplace
firm's 'conservative' stance with its FY23 guidance that
reflected more downside scenarios than upside 
    ** Brokerage trims PT to A$27.09 from A$29.25, but maintains
a 'buy' rating on the stock
    ** Brokerage notes the EBITDA loss of A$12 million ($8.43
million) SEK incurred in Brazil for the second half, A$9 million
higher than the A$3 million loss clocked in the first half
    ** Says Seek is expecting a net profit after tax of
A$250-270 mln for fiscal 2023, about 8% below consensus at the
mid-point   
    ** Cuts earnings per share forecast for FY23 by 6.6% due to
higher interest cost, but upgrades EBITDA by 1.7% due to better
operating leverage  
    ** 7 of 14 analysts rate the stock "buy" or higher, 4 "hold"
and 3 "sell" or lower; median PT A$29.58– Refinitiv data
    ** SEK down 29.5% this year, as of last close

($1 = 1.4237 Australian dollars)

 (Reporting by Roushni Nair in Bengaluru)
 ((Roushni.Nair@thomsonreuters.com;))