SiteMinder (ASX:SDR) could benefit from a recovery in travel demand in the coming months as Middle East tension ease, after underperforming its online travel peers this year, Jefferies said in a note on Monday.

The stock has been weighed down by concerns over artificial intelligence disrupting its platform and its removal from the blue-chip ASX 200 index.

However, the investment firm sees minimal risk from AI disruption with the company's recent partnerships with Mews and DirectBooker indicating SiteMinder's hotel distribution platform remains relevant and is "inherently difficult to replicate."

The brokerage expects the company to generate its first positive net profit after tax in the second half of fiscal 2026 and maintain profitability in fiscal 2027. It also expects SiteMinder to keep costs under control as the business grows.

Jefferies reduced its revenue and EBITDA forecasts for fiscal 2026 and 2027 by 2% due to foreign exchange headwinds and the impact of the West Asian conflict.

It maintained a buy rating and price target of AU$5.10.