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Nasdaq Liquidity at Risk: Sabre Corp Faces Potential Delisting, Higher Capital Costs and Weaker Valuation

Tipranks - Fri Feb 20, 12:04AM CST

Sabre Corp (SABR) has disclosed a new risk, in the Share Price & Shareholder Rights category.

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Sabre Corp faces the risk that an active market for its common stock on Nasdaq may not be sustained, which could hinder shareholders’ ability to sell shares without exerting downward pressure on the stock price. A deterioration in liquidity could also constrain Sabre Corp’s capacity to raise equity capital or use its shares as acquisition currency on attractive terms.

If Sabre Corp were delisted from Nasdaq, trading could migrate to over-the-counter venues with lower liquidity, reduced transparency and wider bid-ask spreads, making price discovery and execution more difficult for investors. Such an outcome could further depress valuation, damage market perception and increase the company’s cost of capital over time.

Overall, Wall Street has a Moderate Buy consensus rating on SABR stock based on 2 Buys.

To learn more about Sabre Corp’s risk factors, click here.

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