Saga’s share price (LON:SAGA) has surged in London this Tuesday as the cruises-to-insurance company for the over-50s unveiled a partnership with Goldman Sachs’ savings bank Marcus. The news marks a boost for the mid-cap lifestyle group, whose shares came under pressure in April as the company booked a £310-million charge and trimmed its payout to shareholders.
As of 09:57 BST, Saga’s share price had added 3.26 percent to 42.50p, outperforming the FTSE 250 which currently stands 0.25 percent higher at 19,358.63 points. The group’s shares have given up more than two thirds of their value over the past year, as compared with about a nine-percent fall in the mid-cap index.
Saga in partnership with Goldman Sachs
Saga announced in a statement today that that Marcus by Goldman Sachs was to become its new long-term savings partner, with the companies set to launch new products together from autumn 2019. Marcus launched in the UK in September last year and has so far attracted over 250,000 customers.
“This is an important strategic partnership for Saga that will help us provide innovative and high- quality products that will be designed not just to meet our customers’ needs, but to exceed their expectations,” Saga’s chief executive Lance Batchelor commented in the statement. The company noted that today’s move marked “one of several strategic initiatives by the Group that are aimed at returning Saga to its heritage”.
The Telegraph, which reported the news earlier today, noted that Batchelor had said that Saga had signed the deal since many of the group’s customers “hold a large proportion of their wealth in savings”.
Analysts on cruises-to-insurance group
The three analysts offering 12-month targets for the Saga share price for the Financial Times have a median target of 65.00p, with a high estimate of 110.00p and a low estimate of 60.00p. As of May 31, the consensus forecast amongst five polled investment analysts covering the lifestyle group has it that the company will outperform the market.