Accelerating Growth and Improving Sentiment Underpin Buy Rating on Sage Group plc

Charles Brennan, an analyst from Jefferies, maintained the Buy rating on Sage Group plc. The associated price target is p1,350.00.

Charles Brennan has given his Buy rating due to a combination of factors that highlight accelerating growth and improving sentiment around Sage Group plc. He notes that first-quarter fiscal 2026 revenue trends are running ahead of the fourth quarter of 2025, while full-year guidance remains intact, signaling operational momentum without raising expectations prematurely. Against a backdrop where investors have demanded faster growth from software names, Sage is now delivering, and this comes at a time when broader sector sentiment is already turning more constructive, which should support the share price.

Brennan emphasizes that Sage’s reported organic revenue growth of about 10% is underpinned by a similar uplift in recurring revenue, which has clearly stepped up versus the prior quarter. This expansion is particularly impressive given the already strong annualized recurring revenue exit rate from the previous quarter, indicating that the company is not just sustaining but improving its trajectory. While a small uplift from multi‑year contracts contributes to the top line, Brennan interprets the data as evidence of a genuine underlying acceleration in the business, reinforcing his conviction in a Buy recommendation.

In another report released on January 22, Citi also maintained a Buy rating on the stock with a £14.00 price target.