Jefferies analyst Charles Brennan has reiterated their bullish stance on SGE stock, giving a Buy rating on March 13.
Charles Brennan has given his Buy rating due to a combination of factors that highlight the resilience of Sage Group plc’s business model. Despite the challenging macroeconomic environment, the company’s subscription-based model provides a stable and recurring revenue stream. This characteristic is expected to be reinforced by the first half of 2025 results, which will likely demonstrate the durability of such revenue models.
Furthermore, Sage has shown consistent growth in its Annual Recurring Revenue (ARR), with a sequential increase of approximately 2% in the first quarter of 2025. Although there is a slight deceleration in growth compared to the previous year, the company is still on track to achieve a 10% ARR growth rate. This steady performance, even amidst broader economic uncertainties, supports the Buy rating as it indicates Sage’s ability to maintain robust growth and financial stability.
In another report released on March 13, Kepler Capital also maintained a Buy rating on the stock with a p1,500.00 price target.