** Citi initiates coverage on Seek SEK.AX with "buy" tag and target price A$28.5, an 18.8% premium to the stock's last close
** Seek is a provider of online employment marketplace services, with segments including Australia, New Zealand and Asia
** Citi sees potential upside to Seek's yield growth as the company leverages AI to improve both candidate and hirer experience via targeted jobs and better placements, resulting in product-led monetization
** However, brokerage expects FY26 EBITDA to be 3% below Visible Alpha consensus
** Citi says while rate cuts in ANZ could boost investment and job listings in the region, consumer confidence is pessimistic and business confidence weak due to macro uncertainty
** Citi also sees Seek's Asian revenue growth to be negatively impacted by a drop in paid ad volumes, but expects growth to pick up over the medium term, with the company's strategy of attracting hirers on the platform being key
** Stock up 6.3% YTD, as of last close
(Reporting by Nikita Maria Jino in Bengaluru)
((Nikita.Jino@thomsonreuters.com;))
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