JP Morgan raises Sage target price
Sage Group
1,064.00p
15:45 15/11/24
Analysts at JP Morgan bumped up their target price for shares of Sage on account of the solid trading already evident in the second quarter and the confident note struck by management alongside the company's interims.
FTSE 100
8,060.61
15:45 15/11/24
FTSE 350
4,453.56
15:45 15/11/24
FTSE All-Share
4,411.85
15:45 15/11/24
Software & Computer Services
2,469.20
15:44 15/11/24
The business software developer said sales had already begun accelerating in the second quarter, reaching a clip of 6.3%, with management "very confident" in its ability to exceed its full-year guidance for revenues to rise 6% (including the US payments business).
They also expect operating margins to exceed 27%.
Furthermore, the decision to discontinue the US payments business will remove one of the drags on growth, the broker said, and potentially bring in cash.
JP Morgan estimated £385.0m-worth, equal to 35p per share.
An alternate use for the funds would be to finance bolt-on acquistions, which would help growth accelerate further, JP Morgan said.
The broker upped its target on the stock from 730.0p to 780.0p and reiterated an 'Overweight' recommendation on the shares.