This ASX 200 stock could storm 17% higher

Here's what Macquarie thinks of this stock.

| More on:
Young woman waiting for job interview.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The ASX 200 Index has fallen 0.92% today, while Seek shares have risen 0.4% to $27.78. 
  • Macquarie maintains an outperform rating on Seek with a $32.50 target price, suggesting a 16.99% upside, citing conservative FY26 guidance and growth potential from product innovation and cost control.
  • Despite a 1% yearly drop in job ad volumes in September, Macquarie forecasts flat FY26 volumes, with growth driven by yield increases and improved operating leverage due to platform unification.

The S&P/ASX 200 Index (ASX: XJO) has dropped 0.92% in afternoon trade on Wednesday. It follows the index's highest-ever level of 9,108.60 points on Tuesday afternoon. Over the year, the index is 9.83% higher.

Seek Ltd (ASX: SEK) shares have experienced a similar gain (10.81%) over the past year. The online employment marketplace company's share price is 0.4% higher for the day and is trading at $27.78 per share at the time of writing. There has been no recent price-sensitive news out of the company.

In early September, analysts at Macquarie Group Ltd (ASX: MQG) said they expect Seek shares to storm higher over the next year. And now, the broker has returned with another note to investors revealing the group's updated guidance.

What's next for the ASX 200 stock?

Macquarie has confirmed its outperform rating and $32.50 12-month target price on Seek shares.

At the time of writing, this represents a potential upside of 16.99% for investors over the next 12 months.

"Seek remains our top classifieds pick with a view that FY26 guidance is conservative and with ongoing execution (i.e. product innovation / pricing, cost controls / operating jaws, Asia strategy and SEEK growth fund redemptions) supporting a re-rating," the broker said in its note.

What else did Macquarie have to say about Seek shares?

The latest update comes off the back of Seek's latest employment report for September 2025.

Macquarie notes that job ad volumes were down 1% year on year in September, with year-on-year declines moderating since June. Volumes are down 3% year on year on a rolling 3-month basis and down 4% year on year on a 6-month rolling basis.

For FY26, there is expected to be a 3% decline in Australian job ads.

Meanwhile, the report shows that applications per ad in August was up 1% to a record high of 219 applications. This is 100 applications, or 83% above the 10-year average.

"For Seek, actual volume growth tends to correlate with growth within this report, but with some adjustments, mostly around the weighting of Australian and New Zealand volumes (MQe = 90% / 10% skew)," the broker said in its note.

Going forward, Macquarie said that ANZ ad volume declines continue to moderate, and current trends could support growth in 1H26. 

"However, our forecasts remain for flat FY26 volumes (-1% 1H / +2% 2H), in line with potentially conservative guidance, with primary earnings drivers being 1) yield growth following the new ad ladder from April 2025 (MQe = +13% in FY26) and 2) increased operating leverage from platform unification."

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Communication Shares

A TV remote in focus with a screen of Netflix options in the background.
Communication Shares

Where to from here for these 2 ASX 200 media shares

Brokers see upside, but are more cautious.

Read more »

A woman in yellow jump holds a coffee and writes in a diary.
Communication Shares

Invested in Telstra shares? Here are the dividend dates for 2026

The ASX 200 telco is trading on a forward dividend yield of 4.1%.

Read more »

A newscaster appears in front of a world map with 'Breaking News' flashing at the bottom of the screen of an old fashioned television receiver with dials.
Communication Shares

Which three media companies could deliver double-digit returns?

The media market remains challenging, but that doesn't mean money can't be made trading these shares, Macquarie says.

Read more »

woman holding 'hiring' sign in shop
Communication Shares

Down 12% past month, is it time to buy this popular ASX 200 stock?

The share price could soar if macro conditions and job ad volumes improve.

Read more »

A cute little kid in a suit pulls a shocked face as he talks on his smartphone.
Opinions

3 reasons Telstra shares are a screaming buy right now!

Telstra's shares closed lower on Wednesday afternoon.

Read more »

A couple stares at the tv in shock, with the man holding the remote up ready to press a button.
Communication Shares

Time to buy? This ASX 200 media share hasn't been this cheap in 5 years

Brokers think it might be time to tune back in at this level.

Read more »

A woman sits on sofa pondering a question.
Communication Shares

Is Telstra stock a buy for its 6% dividend yield?

Should investors call on Telstra stock for a buy for the income?

Read more »

woman with coffee on phone with Tesla
Share Market News

Is this ASX 300 telco a hidden gem for value focused investors?

An ambitious expansion faces new challenges, raising big questions about the next chapter for this ASX 300 contender.

Read more »