Jefferies sees upside risk to Australia's SiteMinder if growth continues

Stroud Resources

29/07/2022 06:14

** Given the strong outlook and sufficient liquidity,
cloud-based hotel platform provider SiteMinder Ltd  SDR.AX 
seems well-placed for growth in FY23, Jefferies says
    ** Brokerage says SDR's liquidity of A$117.7 mln ($82.41
mln) is sufficient to "weather cash burn in the near term"
    ** Jefferies adds that SDR's investment in new marketing
channels and a new product platform will continue for the next
two quarters, but may moderate in 2H23
    ** Jefferies, which retains a rating of "buy" with a PT of
A$4.20, acknowledges the risk SDR faces from recession, but says
"is still much better than a COVID-lockdown"
    ** SDR logs annualised recurring revenue of A$129.7 mln, up
25.3%, and adds that it is targeting pre-COVID-19 revenue growth
rates in the future
    ** SDR up as much as 3.6% at A$4.35 - highest since June 27
- marking its fourth straight session of gains
    ** 5 of 7 analysts rate the stock "buy" or higher, 2 "hold";
median PT A$5.61 – Refinitiv data
    ** SDR down 38% so far this year, as of last close, vs 8.5%
decline in ASX All Ordinaries index  .AORD 

 ($1 = 1.4282 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))