SiteMinder Limited (ASX: SDR)

The company is one of the world’s leading operates hotel Software-as-a-Service (SaaS) platform, ranked among technology pioneers for opening up every hotel’s access to online commerce. The company has headquartered in Sydney with offices in Bangkok, Berlin, Dallas, Galway, London and Manila. As of 9^th February 2022, its market capitalization stands at AUD 1.56 billion.

Financial and Operational Highlights:

During the half-year ended 31 December 2021, the company recorded a growth of ~10% in total revenue to $55 million (on a constant currency basis).  Its Annualized Recurring Revenue (ARR) at the end of 1HFY22 stood at $111 million, reflecting a growth of ~13.5% (on a constant currency basis). It surpassed the revenue growth, reflecting the acceleration of its business. During Q2FY22, SDR was benefited from the continued reopening of travel markets, including in Australia. At the end of 1HFY22, the company had a cash balance of ~$113 million. SDR believes that it is on the path to recovery and its ARR growth from the prior year.

Technical Analysis: On a daily chart, SDR stock prices are sustaining below the horizontal trend line resistance and facing the resistance of the same. The momentum oscillator RSI (14-period) is trading at ~49.79 level, indicating lack of strength in the prices. Moreover, prices are trading below the trend-following indicator 50-period SMA, which may act as a resistance zone. An important support level for the stock, is placed at AUD 5.60 while the key resistance level is placed at AUD 6.55.

Due to subdued position, and current price levels, investing in this stock at such uncertain levels should be taken with calculated approach, hence a ‘Watch’ stance is suggested. The stock was analyzed as per the closing price of AUD 6.060 per share, up by ~5.208%, as of 9^th February 2022.

Daily Technical Chart – G6M

Source: REFINITIV

Note 1: The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decisions should be made depending on the investors’ appetite for upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the Valuation has been achieved and subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and the uptrend may take a pause due to profit booking or selling interest. 

The Green colour line reflects the 21-period moving average. SMA helps to identify existing price trend. If the prices are trading above the 21-period, then it shows prices are currently trading in a bullish trend, (Vice – Versa).

The Blue colour line reflects the 50-period moving average. SMA helps to identify existing price trend. If the prices are trading above the 50-period, then it shows prices are currently trading in a bullish trend, (Vice – Versa).

The Yellow colour line reflects the Trendline, which shows whether the direction of the scrip is upwards or downwards.

The Purple colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

Disclaimer - This report has been issued by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and prepared by Kalkine and its related bodies corporate authorised to provide general financial product advice. Kalkine.com.au and associated pages are published by Kalkine.

Any advice provided in this report is general advice only and does not take into account your objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Statement or other offer document for the securities or other financial products referred to in Kalkine reports. You should obtain a copy of the relevant Product Disclosure Statement, Information Statement or offer document and consider the statement or document before making any decision about whether to acquire the security or product.

You should also seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice in this report or on the Kalkine website. Not all investments are appropriate for all people.

The information in this report and on the Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of information contained in its reports, newsletters and websites. All information represents our views at the date of publication and may change without notice.

Kalkine does not guarantee the performance of, or returns on, any investment. To the extent permitted by law, Kalkine excludes all liability for any loss or damage arising from the use of this report, the Kalkine website and any information published on the Kalkine website (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine hereby limits its liability, to the extent permitted by law, to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

On the date of publishing this report (referred to on the Kalkine website), employees and/or associates of Kalkine and its related entities do not hold interests in any of the securities or other financial products covered on the Kalkine website unless those persons comply with certain safeguards, procedures, and disclosures.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.