Saga share price: Group exploring sale of two travel businesses

Saga (LON:SAGA), the cruises-to-insurance group for the over-50s, is exploring the sale of a cluster of its leisure businesses, Sky News has revealed. The report comes ahead of the lifestyle company’s preliminary results on April 4.

Saga’s share price has been subdued in London this morning, having given up 0.26 percent to 114.10p as of 09:35 GMT, marginally underperforming the FTSE 250 which is currently 0.19 percent worse off at 7,117.15 points. The group’s shares have lost more than five percent of their value over the past year, as compared with a 4.6-percent dip in the mid-cap index.

Saga explores sale of Titan and Destinology

Sky News reported last night that Saga was working with bankers on the possible disposal of Titan Travel, which offers escorted holidays, and Destinology‎, an online provider of four- and five-star vacations. Professional services firm Duff & Phelps has reportedly been hired by the mid-cap group to gauge the appetite of potential buyers. City sources told the newswire that the two businesses could collectively command a price tag of about £100 million.

The potential disposals are part of CEO Lance Batchelor’s efforts to focus on the group’s Saga-branded businesses.

Analysts on lifestyle group for over-50s

The four analysts offering 12-month price targets for Saga for the Financial Times have a median target of 165.00p on the shares, with a high estimate of 185.00p and a low estimate of 105.00p. As of March 9, the consensus forecast amongst 5 polled investment analysts covering the blue-chip group has it that the company will outperform the market.

JPMorgan lowered its rating on Saga last week, arguing that competitive markets are adding to margin pressures, and questioning the sustainability of the company’s dividend.

As of 10:02 GMT, Tuesday, 12 March, Saga PLC share price is 114.10p.