The ASX growth share Siteminder Ltd (ASX: SDR) could be one of the most undervalued businesses on the ASX right now. Experts believe the ASX stock could deliver great returns from here.
As the above chart shows, the Siteminder share price has sunk around 50% since October 2025. But, investor fears about AI could be overblown and the company's ongoing financial success with its hotel software may help justify a resurgence.
Image source: Getty Images
Experts predict big returns
According to CMC Invest, the business has a 100% positive backing from analysts who have rated the business within the last three months – all six were a buy.
The average price target on the ASX growth share is $6.35. A price target tells us where analysts think the business will be trading in a year from now. Therefore, at the time of writing, those analysts suggest the Siteminder share price could rise by 63% over the next year.
The most optimistic price target is $7.32, implying a possible rise of around 90%. Even the most pessimistic price target is $5.30, suggesting a rise of 36%, which would very likely be a market-beating return if that happened.
Price targets are not guarantees, of course, but it's clear that analysts think the business is undervalued, and I believe the company is delivering what it needs to for long-term success.
Strong financial performance
Two of the most important things that an ASX growth share can do is grow its revenue and increase its profit margins. When a business does that, it can lead to a rapidly improving bottom line, which is usually what investors value a business on.
It's winning in a number of ways, including attracting new hotels, growing its average revenue per user (ARPU), offering its distribution engine to other hospitality software providers, and growing its profit margins.
In the FY26 half-year result, annualised recurring revenue (ARR) grew by 29.7% to $280.3 million thanks to the accelerating contributions from its smart platform modules, alongside its continued strength across the broader business.
It also reported in HY26 that ARPU grew 11.3% to $435 and net property additions were 2,900 (taking the total to 53,000) – its current focus is winning larger hotels.
On the margin side of things, the adjusted group gross margin improved by 98 basis points to 67.8%, while the adjusted operating profit (EBITDA) more than doubled in dollar terms to $12.3 million.
If ARR continues growing at well over 20% per year, I think the ASX growth share can deliver a wonderful performance for investors in the next three years.
According to the forecast on CMC Invest, it's projected to generate 11.7 cents of earnings per share (EPS) in FY28. That means, at the time of writing, the Siteminder share price is valued at 32x FY28's estimated earnings. I believe it's a great time to invest in this business for the long-term.
