On Monday, Jefferies showed confidence in SiteMinder (SDR:AU) shares, as the firm raised its price target to AUD6.67 from AUD6.33, while maintaining a Buy rating. The adjustment follows SiteMinder's third-quarter performance, where year-over-year revenue growth experienced a slight deceleration due to the timing of Easter and moderate price increases.
SiteMinder, which operates in the hotel booking industry, is expected to see an acceleration in revenue growth in the fourth quarter. This outlook is based on a recent 9% price hike implemented by the company. The firm's analysis suggests that SiteMinder's strategy of adding larger hotels to its platform is likely to increase the average revenue per user (ARPU) over time without negatively impacting the count of properties listed.
The company's ongoing efforts to enhance its service offerings are also noted, with a new product launch reportedly on track. Additionally, the partnership with Trip.com for the Channels+ service was highlighted as a positive development. This collaboration is anticipated to further strengthen SiteMinder's market position by expanding its distribution capabilities.
SiteMinder's business model, which focuses on providing hoteliers with a platform for online distribution and management of bookings, has been adapting to the evolving needs of the hospitality industry. The firm's remarks underscore the potential for SiteMinder's continued growth and the effectiveness of its strategic initiatives in the competitive online travel market.
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