The SEEK Limited (ASX: SEK) share price has been a very strong performer over the last 12 months.
During this time, the job listings giant's shares have stormed a remarkable 57% higher.
This is almost triple the return of the S&P/ASX 200 Index (ASX: XJO) over the same period.
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Can the SEEK share price keep rising?
The good news for investors is that one leading broker still sees a lot of value in the SEEK share price.
According to a note out of Macquarie Group Ltd (ASX: MQG) from the middle of June, its analysts upgraded the company's shares to an outperform rating with an improved price target of $40.00.
Based on the latest SEEK share price of $31.05, this implies potential upside of 29% over the next 12 months.
Why is Macquarie positive on SEEK?
The note reveals that Macquarie believes SEEK could increase the yields on its ads by almost 25% before it expects there to be any push back from recruiters and impacts on ad volumes.
This follows a survey of recruiters by Macquarie which suggests that it has plenty of room to move on pricing.
In addition, another positive for SEEK is that the broker expects the company's removal of discounts to provide a near term yield tailwind.
Finally, with the broker forecasting a sizeable reduction in Australian unemployment rate over the next few years, it expects this to underpin strong ad volumes growth in FY 2022. Particularly given SEEK's leadership position.
Is anyone else bullish?
Another broker that sees value in the SEEK share price is UBS. Last week the broker retained its buy rating and $35.00 price target on the company's shares.
Based on the latest SEEK share price, this implies attractive upside of almost 13% over the next 12 months.
SEEK is due to release its full year results on 24 August.
