Deutsche Bank raised its price target on Saga PLC (LSE:SAGA) to 285p from 185p on Thursday, citing better-than-expected interim results and upgrades to full-year forecasts.
The broker reiterated its 'buy' rating on the stock, which was up 5% at 242p in late afternoon trading.
Analyst Tim Barrett said first-half EBITDA of £67.5 million came in 12% ahead of expectations, with strong performances across Saga’s travel businesses and better-than-guided results in insurance broking.
Cruise trading was particularly robust, prompting Deutsche to lift its assumptions for per diem revenues in fiscal 2026.
That pushed its pre-tax profit forecast for that year from £30 million to £38 million, in line with management’s new guidance that underlying profit will be at least flat year on year.
Saga, which specialises in travel and insurance for over-50s, has been focused on rebuilding profitability and reducing debt.
Deutsche said the group is making encouraging progress strategically, supported by structural growth in the premium travel market.
At around seven times expected 2026 earnings, Barrett argued the shares offer good value for “a high-quality brand in a structurally growing segment of travel.”
The upgraded price target reflects both near-term earnings momentum and improved confidence in Saga’s longer-term strategy.