Morgan Stanley positive on Sabre ahead of earnings

Morgan Stanley keeps an Equal Weight rating and $5.50 price target on Sabre with a “positive catalyst” call on the stock ahead of earnings. The firm notes that shares have underperformed since Q2 results as a solid beat and raise has been offset by concerns over the New Distribution Capability’s impact to market share, the macro outlook for travel and highly levered businesses in a rising rate environment, but heading into Q3, it is leaning tactically positive as recent travel datapoints suggest upside to a still conservative Q3 and FY23 outlook, the analyst tells investors in a research note.