Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Bernstein SocGen Group upgraded Sabre Corporation (NASDAQ:SABR) from Market Perform to Outperform on Monday, while lowering its price target to $3.00 from $4.00. The stock, currently trading at $1.89, has seen its price plummet nearly 37% in the past week, with InvestingPro data showing technical indicators suggesting oversold conditions.
The upgrade comes despite Sabre’s recent disappointing quarterly results that led to a 38% single-day drop in share price. Bernstein considers the stock oversold at current levels, challenging market perceptions that the company’s Global Distribution System (GDS) business is structurally broken. InvestingPro analysis reveals 12 additional key insights about Sabre’s current market position and financial health.
Bernstein expects Sabre’s booking growth to stabilize in the low single digits, with potentially stronger performance in 2026 driven by agency migrations. The firm also notes that Passenger Service System (PSS) contracts are largely secure, with American and LATAM airlines—representing over 40% of volumes—contracted until the mid-2030s.
The research firm highlighted that Sabre faces no major debt maturities until 2027, providing financial stability in the near term. While acknowledging a competitive disadvantage compared to rival Amadeus (BME:AMA), Bernstein believes Sabre shares are undervalued.
Industry-wide GDS volumes are expected to grow moving forward, supporting Bernstein’s view that Sabre stock is "too cheap" at its current record low price levels. While currently unprofitable, analysts tracked by InvestingPro expect the company to return to profitability this year with forecasted earnings per share of $0.14.
In other recent news, Sabre Corporation reported its financial results for the second quarter of 2025, which showed a notable shortfall in both earnings per share (EPS) and revenue compared to forecasts. The company announced an EPS of -0.02, which was significantly below the anticipated 0.01, resulting in a 300% negative surprise. Sabre Corporation’s revenue also fell short, coming in at $687 million against a forecast of $718.2 million. These financial results represent a significant development for investors and analysts following the company. There were no mergers or acquisitions reported in this period for Sabre Corporation. Analysts’ reactions to the earnings miss have not been detailed in the available information. No upgrades or downgrades from analyst firms were mentioned following these results. Additionally, there were no other major company news updates provided in the recent developments.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.