Analysts Offer Insights on Technology Companies: Jack Henry & Associates (NASDAQ: JKHY) and Sabre (NASDAQ: SABR)

Companies in the Technology sector have received a lot of coverage today as analysts weigh in on Jack Henry & Associates (NASDAQ: JKHY) and Sabre (NASDAQ: SABR).

Jack Henry & Associates (NASDAQ: JKHY)

In a report released yesterday, Glenn Greene from Oppenheimer maintained a Hold rating on Jack Henry & Associates (NASDAQ: JKHY). The company’s shares closed yesterday at $121.43.

Greene wrote:

“JKHY reported solid 3QFY18 results, with adjusted EPS of $0.93, which compared to our/Street $0.86 estimates; upside included ~$0.03 benefit from a lower than estimated tax rate. Normalized revenue grew ~6% Y/Y in 3Q (i.e., ex. termination fee comparisons and M&A). Organic revenue growth continues to outpace peers, and sales appear to be tracking to exceed quota for the year. Encouragingly, JKHY generated ~$138M in FCF YTD thru 3Q; up ~50% Y/Y; but still well below earnings. We await further commentary on the sales/demand environment, revenue drivers, and outlook expectations. Maintain Perform. Our estimates are under review.”

According to TipRanks.com, Greene is a top 25 analyst with an average return of 21.1% and a 83.6% success rate. Greene covers the Technology sector, focusing on stocks such as Fidelity National Info, Total System Services, and Global Payments Inc.

Jack Henry & Associates has an analyst consensus of Moderate Buy, with a price target consensus of $124.67.

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Sabre (NASDAQ: SABR)

Oppenheimer analyst Jed Kelly maintained a Buy rating on Sabre (NASDAQ: SABR) yesterday and set a price target of $27. The company’s shares closed yesterday at $23.55.

Kelly said:

“We are raising our SABR PT to $27 from $26 after a solid 1Q:18 where management increased its ’18E FCF guidance by 9%, which we believe is indicative of continuing travel transaction growth against leaner operations from ’17’s cost-cutting initiatives. Travel Network (TN) bookings share increased to 36.9% on accelerating APAC and North America. While higher incentives and technology expenses are weighing on TN margins, lower capex is alleviating overall cash flow pressures. Airline solutions (AS) regaining its footing, but still early in its turnaround phase. Hospitality Solutions (HS) expected to drive outsized FY revenue and EBITDA growth in 2018. At 8x our ’19E EBITDA, we believes shares are attractively priced for a company scaling long-term travel technology trends. Maintain Outperform.”

According to TipRanks.com, Kelly is a 3-star analyst with an average return of 3.6% and a 51.3% success rate. Kelly covers the Services sector, focusing on stocks such as Booking Holdings Inc, TripAdvisor Inc, and Ctripcom.

Currently, the analyst consensus on Sabre is Strong Buy and the average price target is $27, representing a 14.6% upside.

In a report issued on April 19, Imperial Capital also initiated coverage with a Buy rating on the stock with a $30 price target.

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