Seek Ltd (ASX: SEK) shares have been the best-performing ASX-listed online classified business for the year to date.
Seek has risen 18% so far in 2025.
That's well ahead of fellow online classifieds businesses REA Group Ltd (ASX: REA) and Car Group Ltd (ASX: CAR), which have risen around 2% and 7%, respectively.
The good news for Seek shares enthusiasts is that Macquarie Group Ltd (ASX: MQG) believes the stock has further to run.
Despite their strong performance this year, Seek shares remain the broker's top online classifieds pick.
Let's find out why.
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Macquarie continues to back Seek
In a September 3 research note, Classifieds, the broker reiterated its preference for Seek shares over REA Group and Car Group.
Macquarie has an outperform rating on Seek shares and a price target of $32.50. Given that shares are currently trading for around $27, this suggests an approximately 20% upside over the next 12 months, including capital gains and dividends.
When affirming its stance on Seek shares, Macquarie said:
Seek continues to be our classifieds top pick, supported by attractive growth (MQe = +29% EPS CAGR, FY25-28), driven by product innovation / pricing (structural advantages) and with platform unification providing positive jaws. We also consider FY26 guidance to be conservative across ANZ yield & volumes. As to valuation, Seek is trading on 35x 12-months forward P/E, adjusted for investments, and is on a 1.0x PEG ratio (CAR = 2.9x / REA = 2.8x).
Macquarie is far from alone with this call, with 12 analysts currently rating Seek shares a buy.
What about REA Group and Car Group?
Investors may be wondering whether REA Group and Car Group shares can also deliver market-beating returns.
According to the Vanguard Index Chart 2025, the Australian share market has delivered an annual compound growth rate of 9.3% over the past 30 years.
While it's more than possible for more than one company in each sector or market segment to deliver market-beating returns, this appears not to be the case here, according to Macquarie.
Macquarie has placed neutral ratings on both REA Group and Car Group.
Its price target for REA Group is $255, which is slightly above its current share price of $238.
Justifying this, the broker said:
REA provides the most consistent growth within classifieds (MQe = +16% EPS CAGR, FY25-28) but it is trading on the highest P/E, at 47x 12- months forward, and we see any disruption from competition (Domain under CoStar) likely to impact valuation.
In the case of Car Group, Macquarie's price target is $39, which is where it is trading at today. This suggests it will remain flat over the next 12 months.
Macquarie noted:
CAR should deliver 10-15% medium-term EPS growth (MQe = +12% CAGR, FY25-28) with investment within International impacting operating jaws and with the business seeing a progressively higher tax rate in time. The Australian business is matured, whilst International (more than 50% of earnings) has significant growth potential, both organically and via M&A. Valuation is fair on 35x 12-months forward P/E vs the growth trajectory, in our view.
Foolish Takeaway
In the eyes of Macquarie, Seek shares offer the most compelling value of the three online classifieds businesses on the ASX. The broker expects Seek to deliver around 20% returns from here over the year, which is well ahead of the Australian share market's long-term average. As for REA Group and Car Group, the broker sees limited to no upside from today's levels, mainly on valuation grounds.
