Seek (SEK.ASX) reported FY16 NPAT of $198m in line with guidance. The company maintained FY17 guidance of NPAT in the range of $215 – $220m.
Weakness in the education segment was off set by strength in the Asian employment business. FY17 revenue should increase 10% to $1b on EBITDA of $415m, EPS of $0.64 representing 15 – 20% underlying growth. This places the stock on a forward yield of 2.4%, assuming $0.40 in dividends for FY17.
Seek trades on 25x FY17 multiple and therefore we think the stock trades in a range of $16.00 support to $17.50 resistance for the next 12 months or more.