Sabre Corp.: Strong Network Effect And Stable Long-Term Growth

Oct. 03, 2022 3:05 AM ETSabre Corporation (SABR) StockSABR44 Comments
Heinsite Capital
600 Followers

Summary

  • SABR’s business enjoys a strong network effect.
  • SABR’s core business, GDS, is an extremely sticky product.
  • SABR rides on the long-term tailwind for travel demand.
  • SABR’s stock price has a significant upside if it hits management guidance.

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Thesis highlight

I recommend going long on Sabre Corp. (NASDAQ:SABR) ($5.48 as of this writing). It has one of the best risk-to-reward ratios in the current market environment with a near-term catalyst (post-COVID travel recovery). At this valuation, we simply need

This article was written by

600 Followers
I am an investment analyst in a small boutique firm, covering companies across APAC and US.With over 5 years of dissecting businesses and what makes them tick, I look for opportunities in the markets and am not confined to a particular strategy. I look for strong companies with superior moats, but also believe strongly in managing risks to survive to fight another day.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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