The SEEK Limited (ASX: SEK) share price was on form again on Wednesday.
The job listings company's shares rose 1% to hit a record high of $30.99.
When the SEEK share price hit that level, it meant it was up a sizeable 34% since this time last year.
Why is the SEEK share price at a record high?
Investors have been buying SEEK shares after the job listings giant was tipped to positively surprise during earnings season.
According to a note out of Goldman Sachs, SEEK was one of a handful of shares which it believes could be outperforming expectations.
The broker is forecasting the company to deliver revenue of $816 million for the half, which will be down 7% on the prior corresponding period.
In respect to earnings, Goldman has pencilled in earnings before interest, tax, depreciation and amortisation (EBITDA) of $199 million and net profit after tax of $28 million. This will be a 19% and 62% reduction, respectively, on the same period last year.
Where is the positive surprise?
The broker believes the positive surprise could be an upgrade to its full year EBITDA guidance.
At present, the company is guiding to FY 2021 revenue of $1.6 billion, EBITDA of $400 million, and net profit of $50 million.
Goldman explained: "We expect SEEK to have a solid 1H21 result, and further upgrade its FY21 guidance to a level well above current market expectations (i.e., GSe FY21 EBITDA A$420mn vs. consensus A$404mn, Guidance c.$400mn)."
"We believe this upgrade will be a result of the continual improvement in macro trends (listings, unemployment etc.) relative to the October levels (which is what guidance was based on)."
In addition to this, Goldman has suggested that SEEK shares could be given a boost by an update around the sale process for Zhaopin. It notes that this could help reduce its gearing and help to accelerate growth.
Is the SEEK share price in the buy zone?
Although Goldman Sachs is tipping SEEK to surprise, it isn't tipping its shares as a buy at the current level.
The broker has a neutral rating and $24.90 price target at present. Based on the current SEEK share price, this implies potential downside of almost 20%.
