SEEK LTD (SEK.AU), Australia's leading online employment marketplace, saw its shares plummet by 7.16% in Monday's trading session. The sharp decline comes in the wake of a cautious outlook from Jefferies analyst Roger Samuel, who cut the company's target price by 12% to A$21.70.
Samuel expressed reservations about SEEK's investment potential at its current valuation, despite its continued dominance in Australian job listings. The analyst noted that while the rate of job-ad declines on the platform has slowed, this improvement comes against an easier year-earlier comparable period. With low unemployment rates and increased macroeconomic uncertainty, Samuel sees limited upside to job listing volumes in the near term.
The downgrade and cautious stance from Jefferies appear to have significantly impacted investor sentiment, contributing to the stock's steep decline. As of the latest trading session, SEEK's shares were down 6.1% at A$19.13, reflecting the market's reaction to the revised outlook and broader economic concerns affecting the job market.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.