‘We expect the economic threat in the US combined with uncertainty over the group’s strategic position to lead to continued weakness in the share price’ said analyst Warren Howlett.
Although ABN Amro maintained its sales forecasts for Sage, it lowered its recommendation from ‘add’ to ‘hold.’
The downgrade came after US competitor Inuit issued a profit warning due to the ‘difficult economic environment’ coupled with its free distribution of QuickBooks software, which is the main competitor to Sage’s Peachtree subsidiary in the US.
The situation caused Sage’s biggest rival to lower its sales estimates by $2m. Rival Oracle, also worsened its fourth quarter outlook, blaming the downturn in the US economy.
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