Sabre Corp. (SABR)
Sabre is one of the three primary global distribution systems. GDS platforms serve as a marketplace for displaying and selling transportation tickets for services such as airlines, cruise lines and passenger railroads, and they operate virtually everywhere except China, which has a different marketplace. Sabre has a huge amount of debt, and shares collapsed with the onset of the pandemic. Investors wondered whether the company would even survive. However, Sabre is now on the mend. Shares rallied roughly 25% following its most recent earnings report in which the company showed stronger-than-expected revenue growth and a solidly positive adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, figure. With global travel in a boom, Sabre's operations are looking better.
While the stock is still down more than 70% from where it was prior to 2020, that could change in a hurry if Sabre can string together a couple more positive earnings reports in a row. In fact, while at the time this was written SABR was trading for less than $5, the stock has since rocketed higher and been the recipient of glowing analyst commentary following an impressive quarter. "We plan to lift our $8.50 fair value estimate toward $9 per share to account for higher air booking fees," wrote Dan Wasiolek, senior equity analyst for Morningstar.
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