With the shares having reached our prior 12m TP of 410p, we have undertaken a routine valuation review and upgrade our TP to 515p, while maintaining our Buy rating. There has been no change to forecasts or assumptions. The upgrade reflects a one-year roll-forward of our valuation base to Jan’27, given FY26 is now substantially complete. Importantly, our conviction in the investment case remains intact: Saga is now a Travel-led business with >80% of PBT from highly cash-generative operations, leverage falling and earnings visibility improving. We will formally revisit forecasts following the FY26 year-end update in late January, but continue to see attractive upside as deleveraging accelerates and confidence in delivery builds.
