Sabre Earnings: Another Beat With a Cash Flow Inflection and Improved Liquidity Profile

Like last quarter, Sabre shares rose around 20% from oversold conditions, as it once again surpassed sales and EBITDA guidance and as free cash flow inflected positive, which we have noted could serve as a catalyst. Despite management execution, shares are still down about 35% this year even after today's pop, which we think is driven by investor's distaste for debt leverage companies amid a still uncertain economic environment and higher costs of capital. We think this concern is misguided, especially given Sabre's improved liquidity profile. We don't plan to materially change our $9 fair value estimate and see shares of this narrow-moat company as meaningfully undervalued, although action is likely to remain volatile.