Was $7.48 sorry.

SiteMinder shares advance as Jarden upgrades stock to 'buy'

1:32pm on 11 October 2024

The news: Shares in SiteMinder gained after Jarden upgraded its rating and hiked its target price on the hotel booking company.

The numbers: SiteMinder shares were up 5.7% to $6.77 by 1:25pm AEDT, making it the second-best performing stock across the ASX 200.

Jarden upgraded SiteMinder from 'overweight' to 'buy' and lifted its target price from $5.89 to $7.48.

Jarden also upgraded its EBITDA forecast by 87% to 101% between FY25 and FY27, driven by greater confidence that SiteMinder can maintain momentum in net property adds over the period.

The context: Macquarie analysts said they are "increasingly bullish" on SiteMinder given their research indicates the company is one of the "higher quality tech names" in the S&P/ASX Small Ordinaries, and the best channel manager for small- to medium-sized hotels.

They said they are confident SiteMinder's new products will be successful due to a strong product market fit, SiteMinder's track-record of attaching new products, and the end-market for its new product Dynamic Revenue+ being "relatively immature".

Macquarie flagged that consensus estimates do not factor in "significant" new product revenue growth, with its analysts seeing a scenario where SiteMinder could hit consensus FY31 revenue growth without incorporating any new product revenue.

The source: Jarden research