The market may be near a record high, but that doesn't mean there aren't big potential returns out there for investors.
For example, the ASX 200 share in this article could be destined to outperform the market with a double-digit return over the next 12 months according to analysts at Bell Potter.
Which ASX 200 share?
The share that has been given the thumbs up by Bell Potter is job listings giant Seek Ltd (ASX: SEK).
According to a note, the broker was pleased with the company's performance in FY 2025. It highlights that its earnings per share (EPS) came in 3% ahead of expectations, which underpinned a larger than expected dividend. It said:
SEK's FY25 result was a 3% beat to BPe adj. EPS at 43.5cps, with full year DPS increasing 31% YoY to 46cps (ff) (BPe: 40cps, ff).
Adj. EBITDA margin was slightly below expectations, declining -2% YoY to $459.2m (BPe: $466.7m), noting a reallocation of corporate expenses into ANZ segment following platform unification (nil net impact to Group margin). Adj. NPAT declined -13% to $155.2m but was ahead of BPe ($150.1m). SEK's Growth Fund swung to a $124.6m positive benefit (FY24: -$146.4m).
Bell Potter also highlights that management is guiding to a strong result in FY 2026 despite softer volumes. It adds:
Midpoint guidance for FY26 ranges implies 10% Group revenue growth/15% EBITDA growth/32% growth in adj. net profit (excludes applicable Growth Fund performance/mgmt. fees). We have re-based our volume expectations across the Group through FY26e-28e which drives downward revisions to adj. EPS of -13%/-8%/-6% respectively, however, SEK appears to have latent yield growth drivers as it phases freemium model spin-down near-term for medium-to-longer term benefit throughout Asia operations; near-term, ANZ looks able to support DD yield growth through FY26.
Double-digit returns
The note reveals that the broker has retained its buy rating on the ASX 200 share with an improved price target of $31.45 (from $28.40).
Based on its current share price of $28.39, this implies potential upside of 11% for investors over the next 12 months.
In addition, it is forecasting a dividend yield of 1.6% in FY 2026, which lifts the total potential return to approximately 12.5%.
Commenting on its buy recommendation, the broker concludes:
SEK appears in the early stages of executing on driving yield growth through the cycle to offset down-markets re: volumes from: (1) growing placements/network, and (2) monetising the network, while also extracting margin improvements/operating leverage through its unified platform. We expect share price volatility near-term from sensitivity to economic indicators, but note forecast ~30% adj. EPS growth through-FY28e despite downgrades.
