Citi sees tailwinds for Australia's Siteminder on positive travel demand

SiteMinder

04/11/2022 05:04

** Citi sees cross-border leisure travel for Australia's
Siteminder's  SDR.AX  as key demand driver and improvement in
Asia as a tailwind for FY23e especially given Asia Pacific used
to be largest region for co in pre-pandemic
    ** Also notes outlook commentary from co's peers such as
Booking.com, Expedia; among others on how travel demand will
continue to be strong in the near-term 
    ** Brokerage upgrades co's revenue forecast by 2% for FY23,
after its Q1 FY23 results due to higher transaction growth, but
reduces earnings before interest, tax, depreciation and
amortisation estimate by 1% to reflect higher cash burn in Q1 
    ** Broker flags weakening economic growth and potential
recessions risks to be a barrier for co, although easing
COVID-19 restrictions in Asia and higher transaction revenue
could be positive signs
    ** Brokerage maintains "buy" rating on stock, but cuts price
target to A$4.75/shr from A$5.20/shr 
    ** Six of seven analysts rate the stock "buy" or higher, one
"hold" and none "sell" or lower; their median PT is A$5.73 –
Refinitiv data
    ** Stock has fallen 56.8% this year as of last close
 (Reporting by Archishma Iyer in Bengaluru)
 ((Archishma.Iyer@thomsonreuters.com;))