SABR - Embedded Expectations Analysis - 2020 04 21
ï€ Sabre Corporation (SABR:USA) currently trades near UAFRS-based (Uniform) asset values, with a 1.0x Uniform P/B. At these levels, the market has bearish expectations for the firm, but management is confident about their technology cost initiatives, cloud migration, and their long-term growth strategyï€ Specifically, management is confident about their long-term growth strategy, that they have navigated through a heavy renewal cycle over the past few years, and that they are collaborating with Accor to develop a full-service property management system. In addition, they are confident about their focus on having a more efficient and cheaper technology footprint. Moreover, management is confident their passenger service system cloud migration will strengthen their competitive position and that they are being careful about their migration to cloud-based platforms
Sabre is a technology solutions provider to the travel and tourism industry. The company operates through three business segments: Travel Network, which consists primarily of its global distribution system (GDS) and a range of solutions that integrate with its GDS; Airline Solutions, which provides a portfolio of software technology products and solutions, through software-as-a-service (SaaS) and hosted delivery model, to airlines and other travel suppliers and provides software solutions; and Hospitality Solutions, which provides software and solutions, through SaaS and hosted delivery model, to hoteliers around the world.
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