Sabre Downgraded to Neutral by Rothschild & Co Redburn with $2.40 Price Target

Sabre has been downgraded to Neutral from Buy by Rothschild & Co Redburn, with a price target of $2.40. The downgrade follows a recent report by the company.

Sabre Corporation (NASDAQ: SABR) has been downgraded to Neutral from Buy by Rothschild & Co Redburn, with a new price target of $2.40. The downgrade comes on the heels of recent financial reports that have raised concerns among investors.

Rothschild & Co Redburn cited Sabre's recent financial performance and market outlook as reasons for the downgrade. The company reported a weak quarter with a profit miss and guidance cut, leading to a significant drop in stock price. Sabre shares fell by 38% in a single day, reaching record lows [1].

Bernstein, another major brokerage, had previously raised its rating on Sabre to Outperform, expressing optimism about the company's core global distribution system (GDS) business. However, Bernstein noted that the market's pessimism might be overstated, expecting booking growth to stabilize in the low single digits over time [1].

Despite the downgrade, Bernstein maintains an Outperform rating on Amadeus (BME:AMA), calling it the structural winner in the sector with earnings growth potential from its order management platform. The firm expects the GDS industry to remain broadly flat in growth terms rather than enter terminal decline [1].

Sabre's passenger service system contracts with American Airlines (NASDAQ:AAL) and LATAM Airlines (NYSE:LTM) run into the mid-2030s, providing a stable revenue stream. The company faces no major debt maturities until 2027, offering further financial stability [1].

Investors should closely monitor Sabre's upcoming reports and earnings calls for further insights into the company's financial health and market outlook.

References:
[1] https://www.investing.com/news/stock-market-news/bernstein-upgrades-air-tech-company-sabre-says-market-overstates-industry-decline-4183213