The SEEK Limited (ASX: SEK) share price has been a strong performer over the last six months.
Since this time in October, the job listings giant’s shares are up a sizeable 30%.
This leaves the SEEK share price trading within sight of their record high of $31.89.
Can the SEEK share price go higher?
One broker that believes the SEEK share price may now have peaked for the time being is Goldman Sachs.
According to a note this morning, the broker has reiterated its neutral rating and lifted its price target to $27.40.
This price target implies potential downside of just over 9% for its shares.
What did Goldman Sachs say?
Goldman Sachs has been looking at recent industry data and believes SEEK is well-placed for a stronger than expected second half performance in the ANZ market.
It notes that the Seek Employment Index has continued to recover from 2020 lows. It has increased from 50 in April 2020 to 162 at the end of March.
The broker estimates that if March levels are maintained for the remainder of the half, it will imply 65% listings growth for the period.
Goldman also notes that SEEK is continuing to outperform its competitors Indeed and LinkedIn in respect to volume recovery. It believes this is due to the company’s more cyclical exposures.
Earnings estimates upgraded
In light of the above, the broker has upgraded its earnings estimates.
“Overall we revise SEK FY21/22/23 EBITDA by +4%/+7%/+5%, reflecting stronger ANZ volumes and FX changes, offset by incremental costs. We now forecast FY21 Group EBITDA of A$485mn, 5.4% above FY21 Guidance of $460mn,” Goldman explained.
However, despite this, it believes the SEEK share price is fully valued and thus holds firm with its neutral rating.