It's been one of Australia's most successful digital businesses in the internet age, but times could be about to get tougher for SEEK Limited (ASX: SEK) if the analysts at Goldman Sach's are on the money.
Back on April 30 2019, Goldman's took an updated look at SEEK after it downgraded its profit guidance for the FY 2019 result to come in "moderately below" the FY 2018 result, partly as a result of what it reported as increased investments of up to $45 million in its early stage venture businesses. SEEK is still guiding for revenue growth of 16% to 20% this financial year.
As a result of SEEK's updated guidance Goldman's cut its FY19-21 earnings per share estimates by 2%, 8%, and 9% to contribute to an "EV/EBITDA-based SOTP valuation of A$18.10".
SEEK does appear to be facing some headwinds yet the share price keeps rising to change hands for $21.30 today.
