Seek's Underlying Costs, Reinvestment to Impact Earnings -- Market Talk
Dow Jones2023-08-17
0247 GMT - Seek loses a bull at UBS, where analyst Lucy Huang sees limited catalysts for a share-price rerate over the next 12 months. Huang tells clients in a note that she remains positive on the chances of the employment marketplace lifting yield at an average annual rate in the high single digits over the medium term. However, she warns of the impact of underlying cost growth. Huang lowers Ebitda forecasts for the three years through FY 2026 by an average of 8% to reflect higher levels of reinvestment. The target price falls 4.7% to A$26.50 and UBS cuts its recommendation to neutral from buy. Shares are down 0.8% at A$23.34. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
August 16, 2023 22:47 ET (02:47 GMT)
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