The shares of this tech were just initiated at Sterne Agee CRT as a ‘Buy’ and at Pacific Crest, as ‘Overweight’. Institutions recently added 2 million shares to their holdings, and eight analysts have increased their earnings forecasts for the company in the past month.
Sabre (SABR)
From Cabot Growth Investor
Sabre (SABR) is set up very well ahead of earnings (due out tomorrow morning, April 28. WSBI Editor’s Note: The company earned $0.41 per share, vs. analysts’ estimates of $0.37).
Most weak hands were likely shaken out during the bear raid by a short-selling firm two weeks ago, yet the stock today is just a couple of points below new high ground.
Fundamentally, progress continues: The company recently bolstered its IT segment by acquiring Airpas Aviation, a German firm that helps airlines manage operational costs, and just this week, it was announced that Singapore Airlines will soon be using Sabre’s software to manage and track crew operations and scheduling.
Earnings estimates remain buoyant (+32% this year, +19% next), and with airlines and hotels enjoying record profitability, demand for Sabre’s IT solutions should remain strong.
Our Buy rating stands.
Michael Cintolo, Cabot Growth Investor, www.cabot.net, 978-745-5532, April 27, 2016.