Macquarie downgrades its view on the media sector to Underweight from Neutral, noting multiples are already pointing to a cyclical easing post monetary tightening and the broker cuts sector earnings assumptions.
Macquarie’s macro strategy team now forecasts a 60% probability of a mild recession and that media multiples tend to be the canary in the earnings coalmine, and right now they are pointing to -20% reductions in sector earnings.
The broker says Seek is the most cyclically exposed and downgrades to Underperform from Neutral.
Target price falls to $19 from $32.
Sector: Commercial & Professional Services.
Target price is $19.00.Current Price is $24.25. Difference: ($5.25) – (brackets indicate current price is over target). If SEK meets the Macquarie target it will return approximately -28% (excluding dividends, fees and charges – negative figures indicate an expected loss).
