Goldman Sachs: Sabre Has 19% Return Potential, Adding To Conviction Buy List

In a report published Tuesday, Goldman Sachs analysts maintain their Buy rating on Sabre Corp (NASDAQ: SABR), while adding the company to their Conviction List. The price target has also been raised from $25 to $30.UBS expects Sabre to benefit from various company-specific and macro factors over the coming 18 months, which should offer significant upside to the share price."From a macro standpoint we believe Sabre is uniquely positioned within our coverage to benefit from multiple factors including falling oil prices and a stronger dollar. More important, we think Sabre's revenue growth is poised to accelerate through 2016 as it reaps the benefits of a significant pipeline in its software Solutions business where it is gaining scale," the analysts said.Sabre's share price is also expected to benefit from the company's improving trading liquidity, lower oil prices, expended capacity and the willingness of consumers to spend more on travel. The stronger dollar should prompt international travel, which in turn would benefit the company."[W]e see revenue growth accelerating through 2016 as Sabre's software business ramps to 16%+ growth in 2016 (12% in 2015) post wins at American Airlines, Air Berlin, Alitalia and Copa," the analysts added.