Saga: UBS upgrades to 'buy'
(CercleFinance.com) - This morning, UBS has upgraded its neutral rating on the stock of the British group Saga to buy, raising its 12-month target price from 125 pence to 150 pence, meaning upside potential of around 10%.
Since the profit warning made in December last year by the travel and insurance specialist, its stock has underperformed the London FTSE index by around 30%, UBS points out. However, in the meantime, trading updates show a clear recovery in sales and an improvement in pricing conditions. UBS further believes that the appointment of a new CFO, which is warmly welcomed, will improve the group's communication and credibility.
UBS finally believes that the valuation of the Saga share is too low, and believes that investor sentiment on the stock should improve.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Since the profit warning made in December last year by the travel and insurance specialist, its stock has underperformed the London FTSE index by around 30%, UBS points out. However, in the meantime, trading updates show a clear recovery in sales and an improvement in pricing conditions. UBS further believes that the appointment of a new CFO, which is warmly welcomed, will improve the group's communication and credibility.
UBS finally believes that the valuation of the Saga share is too low, and believes that investor sentiment on the stock should improve.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.