Citi cuts PT for Serko's Australia shares, lowers FY23 forecasts

Serko

16/05/2023 06:06

** Citi reduces target price for travel software maker Serko
Ltd's Australian stock  SKO.AX  to A$3.60 from A$4.00, keeps
"buy" rating
    ** Cuts its FY23 revenue forecast for Serko towards the
bottom end of guidance range of NZ$42 mln to NZ$47 mln ($26.64
mln-$29.82 mln)
    ** Cites weak website visits to Booking.com for Business 
    ** Broker expects Booking.com for Business to see softer end
to FY23 due to an industrial action in Europe impacting business
travel
    ** Citi also cuts its FY23-FY25 earnings before interest,
tax, depreciation and amortisation estimates by 3% to 24% 
    ** However, broker sees resilient corporate travel demand in
FY24 and upgrades revenue forecast for Serko's managed travel
segment by 13%  
    ** Three of six analysts rate the stock "buy" or higher, two
"hold" and none "sell"; their median PT is NZ$4.00 – Refinitiv
data
    ** Serko's Australian Stock had fallen ~1.8% this year, as
of last close; shares currently down 2.3%
    ** Co's NZ shares  SKO.NZ  flat on Tuesday

($1 = 1.5763 New Zealand dollars)

 (Reporting by Archishma Iyer)
 ((Archishma.Iyer@thomsonreuters.com;))