The S&P/ASX 200 Index (ASX: XJO) share Seek Ltd (ASX: SEK) is undervalued according to numerous professional investors.
When one fund manager, analyst or broker calls out a business as an opportunity, it's interesting. When numerous professionals call out an investment as a buy, it could be worth paying attention to that ASX share.
It's a market leader of the online employment classifieds space in Australia and New Zealand, and it also has leading online employment marketplaces in six markets in Asia. Seek also says that it applies innovative data and technology tools to facilitate "high-quality matching and improve reliability of marketplace information." Seek has minority investments in employment marketplaces in China, South Korea and Bangladesh.
According to Commsec's collation of analyst recommendations, there are currently 12 buy ratings on the ASX 200 share. Let's take a look at the appeal of Seek shares.
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Why so many analysts like this ASX 200 share
The broker UBS is one of the institutions that likes the employment portfolio business, with a buy rating. After seeing the FY25 report, UBS said it was a solid result and a "job well done", with the yield outlook intact.
Despite the challenging wider economic conditions, the result highlighted the strength of the business, according to UBS. Asia was a "standout", with the 'freemium' roll-out progressing faster than management's expectations – originally it was expected to take between six to 12 months and now it's expected within six months.
Since that rollout, Seek has seen positive momentum in core KPIs, with material increases across applications per paid ad, monthly unique visitors, monthly ad volumes, unique hirers and placement share.
Emerging market revenue has already reached pre-freemium levels, according to UBS, while development markets will benefit from Hong Kong and Malaysia in the coming weeks.
Seek's ANZ region saw accelerated yield growth in the second half of FY25, with a rise of 17% compared to UBS' expectations of 11% growth, driven by variable pricing, automation features and the advanced ad tier which were released in April 2025.
UBS said that it's confident on ongoing yield growth in ANZ, supported by new AI capabilities, with the ASX 200 share having more data than any competitor, for more effective matching between candidates and jobs, with management highlighting that between 20% to 50% of all applications are from "recommend and notify".
UBS is expecting profit growth
The broker thinks the business could grow its earnings per share (EPS) at a compound annual growth rate of 25% between FY26 to FY29.
UBS noted that management remain focused and confident on operating leverage in both the short-term and medium-term. At the mid-point of FY26 guidance, Seek could see revenue growth of 10%, expenditure growth of 8%, operating profit (EBITDA) growth of 15% and adjusted net profit growth of 32%.
Those forecasts are based on flat volumes in ANZ, though this could improve thanks to a declining interest rate.
Seek is also looking to reach an operating profit (EBITDA) margin of 50% in the medium-term, even if volumes remain unchanged from FY25's subdued levels.
UBS is assuming increasing operating leverage in the medium-term from the Asian business. The broker forecasts overall net profit of $207 million in FY26 and $477 million of net profit by FY30.
This puts the ASX 200 share at 47x FY26's estimated earnings and 21x FY30's estimated earnings. UBS has a price target of $31, implying a possible rise of 13% in the next 12 months from where it is today.
