Investment firm Ord Minnett has identified two stocks within the ASX 200 that it believes present strong buying opportunities: Premier Investments Ltd (ASX: PMV) and Siteminder Ltd (ASX: SDR). Both companies have received buy ratings from the broker, highlighting their potential for growth despite recent challenges.
Premier Investments Ltd: Strong Brand with Growth Potential
Ord Minnett remains optimistic about Premier Investments, despite the company’s recent financial results falling short of consensus expectations. The retail conglomerate reported that its second half of fiscal year 2025 (2H25) retail earnings before interest and tax (EBIT) were approximately 3% below market estimates. Furthermore, the year-to-date trading update for fiscal year 2026 showed a sales growth of 5% year-on-year, which was about 2.5 percentage points lower than anticipated.
The broker attributes its positive outlook to the strength of the Peter Alexander brand and the potential benefits from future mergers and acquisitions. With a healthy net cash position of around $264 million, Premier Investments is well-positioned for strategic growth. Although the Smiggle brand continues to face challenges, experiencing a 5% revenue decline in 2H25, the overall valuation of Premier Investments remains attractive.
Ord Minnett has set a price target of $23.40 for the stock, noting that shares are currently trading at a significant discount compared to their peers. The firm anticipates continued growth supported by new store openings, with at least seven new or upsized stores planned for the first half of fiscal year 2026. Additionally, the ongoing expansion of Peter Alexander in the UK is viewed as a long-term opportunity, with potential EBIT contributions projected between $29 million and $77 million by fiscal year 2030.
Siteminder Ltd: Unlocking Future Value
The second stock highlighted by Ord Minnett is Siteminder Ltd, a travel technology company. The broker believes that the current share price does not reflect the future value of the company’s innovative products, including Channels Plus and Dynamic Revenue Plus. Ord Minnett stated that the market appears to have taken a “ground zero” view of Siteminder’s future, attributing little or no value to these promising offerings.
Following an investor day, Ord Minnett reiterated its belief that the market is undervaluing Siteminder’s potential for growth. The firm has issued a buy rating with a target price of $7.97, while also indicating that shares could rise to between $9 and $10 over the next two years if the company meets revenue forecasts for fiscal years 2026 and 2027.
To arrive at its valuation, Ord Minnett employed a long-term discounted cash flow approach, which it acknowledges may understate the upside potential should Siteminder successfully deliver on its projected revenue. The broker’s optimistic view is bolstered by positive feedback from the industry over the past 18 months.
Investors considering these stocks should conduct their own research and consider their individual financial objectives.
