SEK – UBS rates the stock as Neutral

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Seek’s announcement in early November on phasing out job ad templates will help the company lift depth penetration, suggests UBS, and reminds the broker of the strategy followed by REA Group ((REA)) and Domain Holdings Australia ((DHG)).

The broker highlights circa 40%-45% of Seek’s Australia and New Zealand job ads are on StandOut, currently priced at about $65 per ad. Every additional 10% of standout penetration could be worth circa $10m of job revenues every year, calculates UBS.

Neutral rating is retained with a target of $26.

Sector: Commercial & Professional Services.

Target price is $26.00.Current Price is $26.06. Difference: ($0.06) – (brackets indicate current price is over target). If SEK meets the UBS target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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