SiteMinder's revenue in the 1Q was helped materially by a weaker Australian dollar and revenue growth is running at a better rate for the 1H than both Morgans and consensus expected.

Management assured FY24 guidance is on track and underlying free cash flow (FCF) will be positive in the 2H.

The target falls to $4.60 from $4.80 after only minor forecast changes as the broker increases its weighted average cost of capital (WACC) assumption to 11.5% from 11%. Add.

Sector: Software & Services.

Target price is $4.60.Current Price is $3.94. Difference: $0.66 - (brackets indicate current price is over target). If SDR meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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