Recent data suggests strong volumes have continued both domestically and at Seek Asia. As a result, Credit Suisse upgrades FY22 estimates, now expecting EBITDA of $530.5m, which is ahead of guidance.
Minimal changes are made to FY23 estimates, although the broker points out the business is yet to experience any benefit from dynamic pricing and this could provide yield support.
The broker observes the recent share price performance does signal the market is expecting volumes will drop off significantly into FY23, amid tougher comparables and rising interest rates affecting the employment market. Outperform maintained. Target is lowered to $36.90 from $38.50.
Sector: Commercial & Professional Services.
Target price is $36.90.Current Price is $22.33. Difference: $14.57 – (brackets indicate current price is over target). If SEK meets the Credit Suisse target it will return approximately 39% (excluding dividends, fees and charges – negative figures indicate an expected loss).
