Oppenheimer Thinks Sabre’s Stock is Going to Recover


Oppenheimer analyst Jed Kelly maintained a Buy rating on Sabre (SABR) yesterday and set a price target of $23. The company’s shares closed yesterday at $20.76, close to its 52-week low of $20.54.

Kelly observed:

“Lowering PT to $23 from $28 after SABR reduced its ’19 revenue/FCF by 1%/6% from Jet Airways suspending operations and two PSS clients impacted by 737 Max groundings. We estimate that Jet is ~$15M-$25M negative impact to annual FCF. However, mgmt reiterated its expectations for FCF growing at ’19E-22E low double- digit CAGR on hyper-cloud migration creating better operating leverage. Maintained Travel Network (TN) and Hospitality Solutions (HS) outlook, with TN accelerating share gains (+140bps y/y) that are offsetting Airline Solutions (AS) softness, but creating more cyclical profile than typical tech company. Stock has now given back all momentum from March ’18 investor day and likely range-bound NT until investors get better visibility into FCF cadence. However, yielding 8% our ’19E FCF, we see favorable risk/reward.MaintainOutperform.”

According to TipRanks.com, Kelly is ranked #663 out of 5199 analysts.

Sabre has an analyst consensus of Moderate Buy, with a price target consensus of $26.50.

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Sabre’s market cap is currently $6.29B and has a P/E ratio of 17.10. The company has a Price to Book ratio of 5.91.

Based on the recent corporate insider activity of 69 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SABR in relation to earlier this year.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Sabre Corp. is a technology solutions provider to the global travel and tourism industry. It offers technology solutions including, data-driven business intelligence, mobile, distribution and software-as-a-service solutions. The company operates through the following segments: Travel Network, Airline Solutions and Hospitality Solutions.

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