SDR +18.12%: rallied nicely today (from a low base) following today’s AGM, with the market responding positively to clearer guidance around the company’s medium-term growth ambitions. The key change was management sharpening its language around ARR growth, helping address concerns that momentum was fading after a disappointing FY26 result.
Key takeaways:
- FY27 closing ARR growth expected in the mid-20s, on a constant-currency and organic basis.
- Adjusted EBITDA margin expected to expand meaningfully in FY27.
- FY30 adjusted EBITDA margin target remains around the mid-20s.
- Citi noted the improved wording versus the previous aspiration of simply growth “in the 20s”.
- Canaccord upgraded SDR to Buy, with a $4.10 price target.
The market had become really sceptical about SiteMinder’s growth trajectory following FY26, particularly after ARR growth slipped below prior ambitions. Today’s clarification suggests management still sees a pathway back toward stronger mid-20s growth, while the combination of operating leverage and efficiency gains should support meaningful margin expansion.
We own SDR, and today’s update was better, but the rally needs to be kept in perspective given the stock has come from a very low base.
MM remains long & bullish SDR
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