Short-Term Weakness Doesn’t Impact Seek’s Long-Term Prospects

We have cut our fiscal 2020 earnings forecasts for narrow-moat-rated Seek following management’s guidance that the company is being impacted by the coronavirus outbreak and that this may drag on into fiscal 2021. Seek is primarily exposed to the impacts of the virus via its 61% stake in Chinese employment platform Zhaopin, which comprises around 50% of consolidated group revenue and around a third of group EBIT.