SEK – Citi rates as Sell

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Seek is spending more next year and Citi analysts point out management’s updated guidance for FY19 effectively translates into a -13% downgrade for consensus forecasts.

Citi analysts believe investor expectations for growth from this company should remain low in the years ahead, while the opportunity remains longer term. They also see risk of a cyclical downturn affecting one or more of the company’s core markets.

Estimates have been reduced with the analysts highlighting Seek’s capex has grown at a 38% CAGR over the past five years. This spending compares to 16% revenue growth over the period.

Sector: Commercial & Professional Services.

Current Price is $20.00. Target price not assessed.

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