Sabre's $200M Cost Reduction Will Help Bridge The Gap To '25 Guidance, Says Analyst

Oppenheimer analyst Jed Kelly reiterated a Perform rating on the shares of Sabre Corporation SABR.
The analyst has updated the 2025 EBITDA estimate to $781 million from $749 million after the company beat Q1 consensus EBITDA by 12%.
Management is implementing headcount reductions, and cost realignment that will equate to $100 million in savings in '23 and $200 million on annualized basis, noted the analyst.
Despite the EBITDA beat and expense reductions, there was no change to '23E EBITDA guidance of $300 million-$320 million.
While management is new, SABR's operational history of not meeting medium-term profitability targets has made the analyst cautious.
The analyst believes recent global travel agency wins and an ongoing cloud migration are better positioning SABR to scale long-term travel technology trends.
The analyst maintains Perform on the shares until better visibility is gained around the medium-term free cash flow trajectory.
Price Action: SABR shares are trading lower by 6.3% at $3.18 on the last check Friday.

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