Analysts at Jefferies remain bullish on The Sage Group (LON:SGE), arguing that the company’s momentum remains strong. The upbeat comments come in the wake of the FTSE 100 company’s full-year results last week.
Sage’s share price has been subdued today, having lost 1.14 percent to 607.00p as of 14:48 GMT, matching losses in the benchmark FTSE 100 index. The group’s shares have added some 35 percent over the past year.
Jefferies reiterated their ‘buy’ rating on The Sage Group today, while hiking its price target on the stock from 670p to 710p.
“FY15E results underpinned the key aspects of our positive view on Sage. X3 and SageOne are performing well and taking share, while initial feedback on the new Sage Live product built on Salesforce’s platform is strong,” the analysts were quoted as saying, adding that Sage’s management “are buzzing and momentum is strong”.
The comments come after the software services specialist posted its full-year results last week, reporting that its organic revenue had climbed 6.7 percent to £1.36 billion in the 12 months ended September 30. At the time, the blue-chip group unveiled new reporting guidelines, part of its effort to quickly and efficiently transition to a new business model, with emphasis on cloud-based and mobile products, as opposed to the traditional approach of selling boxed CD copies.Analysts at Jefferies welcomed the changes, saying that they were “logical and innocuous”.
“We believe investors should be on this journey,” Jefferies concluded. Analysts have been upbeat on Sage’s prospects following the group’s full-year results, with JPMorgan & Chase upgrading the company to ‘overweight’ last week, and lifting its price target on the stock from 500p to 670p, while Numis lifted its stance on the FTSE 100 company to ‘add’ with a valuation of 640p.