Key Picks into Reporting Season #2: SDR

Research evidence excerpt

Key Picks into Reporting Season #2: SDR

Idea

July 22, 2026 07:18 AM GMT

Morgan Stanley Australia Limited+MSiteminder Ltd | Asia Pacific James Bales

Equity Analyst

Key Picks into Reporting Season James.Bales@morganstanley.comChenny Wang, CFA +61 2 9770-1603

Chenny.Wang@morganstanley.com +61 2 9770-9227

#2: SDR Edward Xu

Research Associate

Edward.Xu@morganstanley.com +61 2 9770-1181

Ahead of the August results, we highlight key small-/mid-cap

ideas where we have conviction into earnings and on

outperformance/underperformance in FY27. Key Idea #2: SDR.

Why SDR made the list: 1) Expect FY26 earnings delivery - Unlike much of our

coverage SDR has not provided a trading update into FY26 results, suggesting VA Siteminder Ltd (SDR.AX, SDR AU)

EBITDA cons of A$29.9m is realistic despite FX headwinds and the Middle East Australia Emerging Companies | Australia

conflict. This is in contrast to several other downgrades in the travel space and Stock Rating Overweight

Industry View In-Line

SDR's perceived AI challenges. 2) Scope for FY27 re-acceleration - VA cons has 23% Price target A$6.55

revenue growth in FY27 vs 22% growth in FY26. We see scope for the upsell of DR+ Up/downside to price target (%) 93

Shr price, close (Jul 21, 2026) A$3.40

and the recent Mews deal (along with further PMS partnerships) to drive sales 52-Week Range A$7.96-2.60

acceleration ahead of cons. 3) Valuation - Historically the SDR earnings base has Sh out, dil, curr (mn) 261

Mkt cap, curr (mn) A$887

been small or negative, however, looking forward to FY27 (18x EV/EBITDA) and EV, curr (mn) A$853

FY28 (12x EV/EBITDA) we see much greater scope for valuation support to limit Avg daily trading value (mn) A$8

downside. Fiscal Year Ending 06/25 06/26e 06/27e 06/28e

EPS (A$)** (0.07) (0.02) 0.04 0.10