Goldman Sachs has upgraded Seek to neutral, citing that the online job marketplace’s positive half-year results were not adequately reflected in its share price. Analyst Kate Hannan reiterated Seek’s $25 price target, implying a 7 percent upside. This upgrade follows Seek’s third consecutive half of double-digit yield growth, the monetization of the Seek Growth fund at a premium, and a reduction in financial year cost guidance, demonstrating cost discipline.
Hannan also highlighted rising job ad numbers as a positive indicator. Despite these factors, Seek’s stock has traded down 11 percent since February 19, the day after its first-half trading result. This discrepancy between performance and valuation led to the upgrade. However, Hannan cautioned that higher-than-expected operational investments and potentially weaker global growth, which could negatively impact volumes, remain potential headwinds for Seek in the next financial year.
