Why this leading broker thinks the SEEK (ASX:SEK) share price is a buy

The SEEK share price could be heading higher from here…
The post Why this leading broker thinks the SEEK (ASX:SEK) share price is a buy appeared first on The Motley Fool Australia. –

The SEEK Limited (ASX: SEK) share price has been a very strong performer over the last 12 months.

During this time, the job listings giant’s shares have stormed a remarkable 57% higher.

This is almost triple the return of the S&P/ASX 200 Index (ASX: XJO) over the same period.

Can the SEEK share price keep rising?

The good news for investors is that one leading broker still sees a lot of value in the SEEK share price.

According to a note out of Macquarie Group Ltd (ASX: MQG) from the middle of June, its analysts upgraded the company’s shares to an outperform rating with an improved price target of $40.00.

Based on the latest SEEK share price of $31.05, this implies potential upside of 29% over the next 12 months.

Why is Macquarie positive on SEEK?

The note reveals that Macquarie believes SEEK could increase the yields on its ads by almost 25% before it expects there to be any push back from recruiters and impacts on ad volumes.

This follows a survey of recruiters by Macquarie which suggests that it has plenty of room to move on pricing.

In addition, another positive for SEEK is that the broker expects the company’s removal of discounts to provide a near term yield tailwind.

Finally, with the broker forecasting a sizeable reduction in Australian unemployment rate over the next few years, it expects this to underpin strong ad volumes growth in FY 2022. Particularly given SEEK’s leadership position.

Is anyone else bullish?

Another broker that sees value in the SEEK share price is UBS. Last week the broker retained its buy rating and $35.00 price target on the company’s shares.

Based on the latest SEEK share price, this implies attractive upside of almost 13% over the next 12 months.

SEEK is due to release its full year results on 24 August.

The post Why this leading broker thinks the SEEK (ASX:SEK) share price is a buy appeared first on The Motley Fool Australia.

Should you invest $1,000 in SEEK right now?

Before you consider SEEK, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and SEEK wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

2 top blue chip ASX shares rated as buys

Seek (ASX:SEK) share price slides after growth fund spin off
2 excellent ASX 200 blue chip shares named as buys

2 fantastic ASX shares named as buys by analysts

Top brokers name 3 ASX shares to buy today

Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!