Shares in travel firm Saga (SAGA) hit a new high after holding company Kelso (KLSO) revealed it had bought a stake. Kelso said it acquired the stake at the start of January 2026.
| Price: 398p +3.8% | P/E: 13.4x |
| Market Cap: £570m | Yield: n/a |
Kelso’s stake is just 400,000 shares out of Saga’s issued capital of 144 million shares, so it’s not material. However, Kelso is clearly bullish on the prospects for the over-50s travel firm.
Based on Kelso’s internal analysis, Saga trades on an EV/EBITDA multiple to January 2026 of around 7.5 times. The calculation is based on Saga’s last reported interim net debt level of £511m.
‘Despite a strong share price in 2025, we believe there is significant upside when compared to peers’, the firm said. Kelso also sees potential for Saga to rejoin the FTSE 250 in 2026 prompting buying demand from index funds.
The firm predicted Saga’s gearing would fall to 2 times by 2030 which it said would ‘unlock the equity story’.
Saga shares more than tripled last year from 126p to 391p so Kelso isn’t exactly early with its investment.
However, the fact it still sees significant upside is telling and in fairness companies like Carnival (CCL) and Royal Caribbean have performed even better over the last couple of years.
Also, having sold its insurance underwriting business last year, Saga is in a strong financial position, plus it is asset-backed with a fleet valued at more than its current market cap.
Read the press release here: https://www.londonstockexchange.com/news-article/KLSO/new-investment-in-saga-plc/17399670
Disclaimer: This content is for information only and is not investment advice. Always do your own research before investing. Click here to see full disclaimer.
