On Monday, Mizuho Securities adjusted its financial outlook for Sabre (NASDAQ:SABR) Corporation (NASDAQ:SABR), a technology provider to the global travel industry. The firm's analyst has reduced the stock price target on the company's shares to $3.00 from the previous $4.00, while the stock's rating remains at Neutral.
The revision follows Sabre Corporation's recent quarterly earnings report and the management's updated guidance on sequential Global Distribution System (GDS) booking growth. In response to the company's projections, Mizuho has decreased its fiscal year 2024 revenue estimates by 1%. Nonetheless, the firm has decided to keep its fiscal year 2025 revenue estimate steady.
The analyst from Mizuho anticipates that Sabre will likely face increased expenses as it seeks to hasten product innovation in an effort to stimulate booking growth. This expectation has led to a 5% reduction in the projected EBITDA for fiscal year 2025, aligning with the guidance provided by Sabre's management.
The new price target of $3.00 is derived from applying a 7.2 times multiple to Mizuho's revised forecast for the company's fiscal year 2025 EBITDA. This adjustment reflects the analyst's latest expectations for Sabre's financial performance in the coming years.
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