Citi expects earnings upgrade for NZ's Serko, raises PT for Australia shares

Serko

09/10/2023 20:11

** Analysts at Citi see another earnings upgrade for
business travel software maker Serko  SKO.AX , driven by
Booking.com for Business — a business travel platform
    ** Brokerage raises PT for ASX-listed shares to A$4.75 from
A$4.35, reiterates "buy/high risk" rating
    ** Weaker macro environment can negatively impact travel
demand, but increasing penetration of Booking.com for Business
to more than offset this - brokerage
    ** Citi increases its FY24 revenue estimate for SKO by 4% to
NZ$71 mln ($42.75 mln)
    ** Forecast assumes a 5% sequential growth in average
revenue per completed room night in H1'24 and flat in H2'24,
says brokerage
    ** Citi also expects SKO to upgrade its FY24 revenue
forecast while keeping cost projection unchanged
    ** Five of 7 analysts rate the stock "buy" or higher, 2
"hold"; median PT for ASX-listed shares is A$4.35 – LSEG data
    ** ASX-listed shares up 64.1% YTD, as of last close 

($1 = 1.6609 New Zealand dollars)

 (Reporting by Echha Jain in Bengaluru)
 ((Echha.jain@thomsonreuters.com))