NEW YORK (TheStreet) -- Shares of Sabre Corp. (SABR) - Get Report are rising by 1.36% to $28.97 in pre-market trading on Thursday, as Pacific Crest initiated coverage of the stock with an "overweight" rating and $35 price target.
The Southlake, TX-based company is a technology solutions provider to the global travel and tourism industry.
Sabre is an "underappreciated beneficiary of the digital democratization of travel," according to Pacific Crest.
"As online travel marketplaces continue to democratize travel, particularly around hospitality, we think air passenger volume has a meaningful longer-term tailwind, which should benefit Sabre, a leader in the airline distribution oligopoly and provider of travel supplier software and service," the firm wrote in an analyst note.
The combination of digital marketplaces and new sharing economy models are lowering the bar for who can travel, which should continue to drive persistently strong air passenger volume growth, Pacific Crest said.
Additionally, the demise of brick-and-mortar travel agents create a "wall of worry," but the company is a well-insulated balance of growth and value tied heavily to air traffic volume, the firm noted.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted our rating are mixed.
The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and good cash flow from operations.
As a counter to these strengths, the team also finds weaknesses including generally higher debt management risk and disappointing return on equity.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: SABR