Video: Seek – Getting hotter in the kitchen

About the author:

Ivor Ries
Author name:
By Ivor Ries
Job title:
Senior Analyst
Date posted:
20 March 2018, 10:30 AM
Sectors Covered:
Information Technology, Online Media

  • We are lowering our recommendation on Seek to Reduce ahead of the expected launch of Google For Jobs in Australia.
  • In our view Seek has the right tools to see off the threat from Google, but in the short term earnings may grow less than expected and sentiment towards the stock may become more cautious.
  • Our DCF valuation has declined to A$19.01 per share (from A$20.46 per share). Our target price, set by the DCF and an EV/EBITDA multiple, falls to A$19.07 per share from (A$21.07 per share).
  • We like the long-term Seek story, but with a new entrant vying for market share, the risk of under-performance is higher than usual.

More information

Morgans clients can view further analysis in my full report: 'Seek – Getting hotter in the kitchen'. Alternatively, please contact your Morgans adviser or nearest Morgans office for access.

Disclaimer(s): Analyst owns shares.

The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.

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