Barclays downgrades Sage Group to ‘underweight’

Barclays downgraded Sage Group on Monday to ‘underweight’ from ‘equalweight’ and cut the price target to 985p from 1,050p.

The bank said annualised recurring revenue (ARR) growth and the pace of margin expansion peaking, combined with an elevated valuation, "all suggest it's as good as it gets for Sage shares".

"With NCA growth slowing and risks to NRR from the macro backdrop, we see better value elsewhere," Barclays said.

At 1320 GMT, the shares were down 0.5% at 1,146p.