SiteMinder can increase prices to mitigate impact of wage inflation - Jefferies

Stroud Resources

25/07/2022 19:48

** Jefferies says Australia's cloud-based hotel platform
provider, SiteMinder Ltd  SDR.AX , can increase prices to
mitigate impact from wage inflation; raises rating to "buy" from
"hold" 
    ** Adds while SDR is still making a loss and burning cash,
valuation is compelling at 6.5x FY23 revenue growth of 20%+
    ** Expects SDR to be more efficient in sales and marketing
in FY23 onwards as it ramps up digital customer acquisition  
    ** Jefferies, however, cuts PT to A$4.46 from A$4.81, says
SDR has underperformed compared to peers
    ** 5 of 7 analysts rate the stock "buy" or higher, 2 "hold";
their median PT is A$5.50 – Refinitiv data
    ** SDR down 44.7% since start of the year

 

 (Reporting by Jaskiran Singh in Bengaluru)
 ((Jaskiran.Singh@thomsonreuters.com;))