Sabre (SABR – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Josh Baer from Morgan Stanley maintained a Hold rating on the stock and has a $3.50 price target.
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Josh Baer has given his Hold rating due to a combination of factors impacting Sabre’s performance. The company faces challenges from broader macroeconomic and industry pressures, which have affected its Global Distribution System (GDS) bookings growth. As a result, Sabre needs to rely more heavily on gaining market share to achieve its target of double-digit growth in air bookings, a goal that seems increasingly challenging given the current market conditions.
Despite these challenges, Sabre has shown some positive signs, such as its ability to reduce net leverage and its potential for top-line growth and margin expansion, which could drive annual EBITDA growth. However, the company’s unchanged FY25 guidance, following a Q1 revenue miss, suggests that prior conservatism and potential upside may now be limited. While management remains optimistic about distribution share wins and bookings growth, the evidence of outperformance in Q1 was not clear, leading to cautious investor expectations for the rest of the year.
According to TipRanks, Baer is a 3-star analyst with an average return of 3.6% and a 51.67% success rate. Baer covers the Technology sector, focusing on stocks such as DigitalOcean Holdings, Coursera, and Udemy Inc.