It has been a difficult 12 months for Seek Ltd (ASX: SEK) shares.
During this time, the job listings stock has been one of the worst performers on the S&P/ASX 200 index (ASX: XJO) with a 45% decline.
Unfortunately, one leading broker doesn't believe this has created a buying opportunity for investors.
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What is the broker saying?
Bell Potter has been looking over Seek's FY 2026 results. While the broker was pleased with its performance, it was disappointed with its guidance. It commented:
SEK produced an FY26 broadly in-line with expectations at 29% growth in adj. EPS to 56cps (BPe: 56cps) and 13% growth in the fully franked dividend for an FY payout of 52cps (BPe: 52cps), however the result was weighed down by a soft outlook.
SEK guided to weaker ANZ volumes than expected at mid-single digit declines as a base case due to ongoing operating headwinds; though somewhat offset by its ability to generate yield growth of 10% as a floor. Ranges include: net revenue: $1.21b-$1.28b (BPe: $1.23b), EBITDA: $530m-$580m (BPe:$558m), and adjusted profit for $185m- $215m (BPe: $197m).
Total portfolio value declined -13% YoY in FY26 to $1.98b (SEK share: $1.66b). SEK announced the Fund will sell down potentially $1b in identified assets, which will broadly be returned to SEK shareholders in some form (i.e. buyback, special dividend, capital return) or put toward paying down debt. Further detail is anticipated by end CY2026.
In response, the broker has reduced its earnings per share estimates for the ASX 200 stock.
ASX 200 stock downgraded
According to the note, the broker has downgraded Seek's shares to a hold rating (from buy) with a trimmed price target of $15.20 (from $18.58).
Bell Potter thinks investors should wait for a positive shift in sentiment or better visibility on a jobs volumes recovery. It explains:
We downgrade to Hold and await a positive shift in sentiment or visibility on jobs volumes recovery; similarly, we suspect a potential growth fund catalyst is a 2H27 story. SEK appears to be improving operations to sustainably target 10% yield growth on top of strong cost controls, however, despite trading at deep value ex. Growth Fund, macro-based headwinds suggest difficult sentiment near-term for the stock.
