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Key Points
- Macquarie raised the price target of SEK by 12% to AU$28.
- The company is in exclusive due diligence to acquire Xref for AU$45 million, which analysts say aligns with Seek's strategic objectives.
- Macquarie retains an "outperform" rating on Seek, citing a positive three-year outlook for yield, margin, and volume despite the stock's 5.6% decline year-to-date.
Shares of Seek Limited (ASX:SEK) gained significant limelight today following a 12% increase in the price target set by analysts at Macquarie, who have adjusted their expectations for the company amid a favorable outlook.
On Monday, Seek announced that it had entered into exclusive due diligence to acquire HR and recruitment technology firm Xref (ASX:XF1) for AU$45 million (approximately $30.27 million). Macquarie noted that this potential acquisition aligns well with Seek's strategic objectives, as Xref could enhance the company's existing platform and broaden its service offerings.
Macquarie's analysis highlighted a positive shift in Seek's three-year outlook, noting improvements in yield, margin, and anticipated volume. The brokerage maintains an "outperform" rating for Seek, indicating confidence in the company's growth trajectory following the potential acquisition of Xref.
While Seek's shares experienced a boost, Xref's stock remained flat during trading. As of the last close, Seek has seen a decline of 5.6% year-to-date, indicating that despite the recent positive developments, the company has faced challenges in the market over the course of the year.
