SEEK LTD (SEK.AU), Australia's leading online employment marketplace, saw its shares plummet by 7.16% in Monday's trading session. The sharp decline comes in the wake of a cautious outlook from Jefferies analyst Roger Samuel, who cut the company's target price by 12% to A$21.70.

Samuel expressed reservations about SEEK's investment potential at its current valuation, despite its continued dominance in Australian job listings. The analyst noted that while the rate of job-ad declines on the platform has slowed, this improvement comes against an easier year-earlier comparable period. With low unemployment rates and increased macroeconomic uncertainty, Samuel sees limited upside to job listing volumes in the near term.

The downgrade and cautious stance from Jefferies appear to have significantly impacted investor sentiment, contributing to the stock's steep decline. As of the latest trading session, SEEK's shares were down 6.1% at A$19.13, reflecting the market's reaction to the revised outlook and broader economic concerns affecting the job market.