Accommodation booking platform SDR delivered a solid result last month, although revenue growth was marginally below some analyst expectations. This business is the booking and payment engine behind a number of hotels, and it is enjoying the ever-improving outlook for travel and tourism. They have a simple business model which benefits from lifts in transactional volume; hence, as they continue to sign on new partners, their outlook looks good. With the transformation into positive FCF and EBITDA in 2H24 expected, we think the stock looks good over the coming years.
- We like SDR from a risk/reward perspective back around $5 or 10% lower, i.e., it’s already been there twice in recent weeks.
MM is neutral to bullish on SDR, around $5.50
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