https://finance.yahoo.com/news/7-most-undervalued-stocks-buy-103058528.html
Sabre (NASDAQ:SABR) is one of the three primary global distribution systems (GDS) for airlines, hotels, and other travel industry companies. GDS operators serve as a marketplace between airlines, cruise lines, passenger railroads, etc. on one side, and buyers such as travel agents and online booking websites on the other.
Sabre, and its two competitors, get a cut of every transaction that passes through these GDS ticketing platforms. As airline traffic has come roaring back over the past two years, it has given the GDS firms a tailwind.
That said, Sabre has failed to capitalize so far. It invested heavily in upgrades to its tech infrastructure just prior to the pandemic. Business came to a halt before these upgrades could pay off; instead, Sabre ended up undercapitalised and in financial trouble.
The company has struggled to get back on track and reach profitability. However, there’s a high-quality business lying under the surface here. Morningstar believes Sabre can take flight once again; its analyst pegs fair value at $10.50 versus today’s price in the low $4 range.