RBC bullish on Australia's Siteminder, sees financial recovery

SiteMinder

15/12/2022 02:47

** Brokerage RBC initiates coverage on Australia's
Siteminder  SDR.AX  with an "outperform" rating as it sees the
company achieving EBITDA profitability in FY24 
    ** RBC says SDR's software-as-a-service business is
recovering well from pandemic lows as customer churn levels
return to pre-pandemic levels, which benefits Siteminder, a
provider of software services to hotels
    ** SDR says it expects to be free cash flow neutral by Q4 of
FY24; RBC expects SDR to post an EBITDA profit by H2 of FY24,
when it sees global hotel bookings surpassing pre-COVID levels 
    ** RBC has a price target of A$4.00 on the stock 
    ** According to Refinitiv data, 10 out of 11 analysts rate
the stock "buy" or higher, while one has a "hold" rating; median
PT is A$4.60 
    ** SDR last traded 1.6% higher at A$3.15
    ** As of last close, SDR is down 54.1% YTD 
 (Reporting by Harshita Swaminathan)
 ((Harshita.Swaminathan@thomsonreuters.com))