Analysts still satisfied with Sage
Sage set to meet year end targets in line with market expectations
Analyst sentiment has remained positive for Sage after the release of its
trading update for 30 September year end results.
The FTSE100 software giant expects revenues for the year to grow by 14% to
£777m, with pre-tax profit to climb by 13% to £204m, both in line with market
expectations.
Goldman Sachs said that Sage was ‘well managed’ and with a low execution
risk, but expected competition to intensify in the longer term.
Bear, Stearns & Co analyst Toby McCullagh said: ‘Given its combination of
defensive qualities, organic growth potential and margin expansion upside
potential, we continue to view Sage as a core holding for European software
investors.
Credit Suisse First Boston maintained an ‘outperform’ rating on the company’s
stock.
Further details will be released with Sage’s preliminary results announcement
on 30 November.