Citi downbeat on Australia's SiteMinder; cuts EBITDA forecast and PT

SiteMinder

07/07/2024 19:35

July 8 (Reuters) -    ** Analysts at Citi lower
FY24e-FY26e EBITDA forecasts by 14% to 22% for accommodation
platform SiteMinder  SDR.AX , flagging higher costs due to
upcoming product launches and lower margins
    ** Citi lowers FY24e – FY26e transaction revenue forecast by
1% to 2% citing a drop in transaction revenue in 4Q24
    ** Brokerage cuts target price by 2% to A$6.15; however,
maintains 'buy' rating on expectations of a step-up in property
net adds in 2H24e
    ** Citi cuts gross profit margin forecast for FY25e by 45bps
due to lower margin expected for co's upcoming service -
Channels+ - as its expects support costs to be higher at launch
    ** 12 of 15 analysts rate the stock "buy" or higher, two
"hold" and one "sell" ; their median PT is A$6.50 – LSEG
    ** SDR down 22.1% YTD, as of last close

 (Reporting by Adwitiya Srivastava in Bengaluru)
 ((Adwitiya.Srivastava@thomsonreuters.com;))