Jefferies analyst Charles Brennan maintained a Buy rating on Sage Group plc today and set a price target of p1,320.00.
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Charles Brennan has given his Buy rating due to a combination of factors including Sage Group plc’s strong fiscal year 2025 performance, which underscores the resilience of its business model. The company’s guidance for organic growth is robust, projected at 9% or higher, surpassing the consensus estimate of 8.7%. Additionally, Sage has announced a significant £300 million buyback, which typically supports share value.
Furthermore, Sage’s earnings before interest and taxes (EBIT) exceeded expectations by 2%, with EBIT margins reaching 23.9% compared to the consensus of 23.5%. The company’s organic recurring revenue growth was slightly higher than anticipated, and the annual recurring revenue (ARR) growth stabilized at 9.9%, indicating a strong outlook for future revenues. Despite a minor setback in the NCA component, the overall performance and strategic initiatives contribute to the positive outlook, justifying the Buy rating.
According to TipRanks, Brennan is a 5-star analyst with an average return of 10.8% and a 64.15% success rate. Brennan covers the Technology sector, focusing on stocks such as Temenos, Softcat, and Capgemini SE.