Citi’s analysts perceive the move into revenue management systems (RMS) as a sensible extension for Australian hotel commerce platform, Siteminder (ASX:SDR).

This move is seen as a natural part of SDR’s evolution from a singular product package towards a comprehensive hotel technology platform.

The price target for Siteminder has been boosted to A$5.50 from A$5.20, primarily reflecting potential earnings upgrades over the medium term, and maintaining a ‘buy’ recommendation.

Citi suggests the RMS sphere to represent a relatively untapped opportunity that leverages SDR’s strengths.

The shift into RMS is expected to positively impact SDR’s unit economics, as the average revenue per user (ARPU) is traditionally higher.

Out of 15 analysts, 11 give the stock a ‘buy’ or higher rating, three rate it a ‘hold’ and one rates it as ‘sell’; their median price target stands at A$5.10, according to LSEG data.

SDR’s stock has surged 49.3% year to date (YTD), as of the recent close.

Siteminder (ASX:SDR) is an Australian based hotel commerce platform.