2024-04-09 03:57:39 ET
Summary
- Sabre Corporation reports a double-digit increase in central reservation transactions and potential for cost-efficiency efforts to enhance future growth.
- The company operates as a technology development company in the travel and tourism industry, connecting clients with various entities in the industry.
- SABR's activities are divided into two segments: hotel solutions and travel solutions, offering software, platforms, and a marketplace for various travel services.
- In my previous article about Sabre, I used a DCF model. In this case, I used a dividend discount model given the previous dividend distribution. In both cases, I obtained a fair valuation that is higher than the current market price.
Sabre Corporation ( SABR ) recently reported a double-digit increase y/y in the number of central reservation transactions, and noted that cost efficiency efforts could enhance future Adjusted EBITDA growth. Given the guidance offered for 2025 , restructuring efforts, potential sale of business units, and successful refinancing of the debt, I think that we could see net income growth and dividend distribution in the future. Issues with third parties, debt covenants, or changes in the regulation could bring lower net income growth than expected. With all that being said, I believe that there is upside potential in the stock price.
Sabre Corporation
Sabre Corporation is a technology development company dedicated exclusively to the travel and tourism industry. The company is defined as a bridge between potential clients and different entities within this business such as tourism agencies, commercial airlines, hotels, and residences among others....
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Factors That Influence Sabre's Net Income Growth, Maintain Buy