Australia's Siteminder gains as Morningstar initiates coverage

SiteMinder

01/07/2024 04:52

** Shares of Australia's Siteminder  SDR.AX  rise as much as
2% to A$5.19
    ** Analysts at Morningstar initiate coverage of the bookings
platform at a fair value estimate of A$10, a 92.7% premium to
Monday's high
    ** Brokerage sees co's revenue to grow at a 10-year compound
annual growth rate of 24% 
    ** Expects EBIT margins to expand to 16% by FY33 from
negative 32% in FY23
    ** Says co's shares are currently materially undervalued 
    ** Adds current share price is not reflecting of brokerage's
view of co as an industry leader which has a large and highly
winnable market opportunity
    ** Stock has fallen 0.8% this year, as of last close 

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))