On Wednesday, RBC Capital maintained its optimistic stance on SiteMinder (SDR:AU), reiterating an Outperform rating with a steady price target of AUD6.50. The firm highlighted SiteMinder's significant financial achievements in fiscal year 2024, including reaching EBITDA profitability and positive free cash flow (FCF) in the second half of the year.
SiteMinder's strategic focus on its three-pillar Smart Platform strategy is expected to propel growth, particularly from fiscal year 2026 onward. RBC Capital projects a 24.8% revenue increase in FY25, which is anticipated to accelerate to 28.4% in FY26 as new products begin to contribute to the company's earnings.
The company's transition to positive free cash flow is seen as a pivotal moment, with revenue growth nearing SiteMinder's medium-term target of 30%. This progress is believed to be a key factor in SiteMinder's journey towards meeting the "Rule of 40," a benchmark that balances growth and profitability for software companies.
RBC Capital's analysis suggests that the company's strategic initiatives and financial performance set the stage for sustained growth in the coming years. SiteMinder's adherence to its outlined strategy and its recent financial milestones have reinforced the firm's confidence in retaining the Outperform rating.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.