Contact us Find us Register
Back to previous section

Sage should be resilient amid macro uncertainty, says Citi.

Citi has reiterated a 'buy' rating for enterprise software giant Sage ahead of its interim results next week, saying that the company's "drivers of resilience" were solid despite an uncertain macro environment.

  • The Sage Group
  • 09 May 2025 11:04:52
Sage Group

Source: Sharecast

Ahead of the results, Citi analyst Balajee Tirupati said the market's focus will be on customer demand and behaviour amid tough conditions, with many concerned about Sage's exposure to the small and medium-sized business (SMB) and non-profit markets in the US.

"Against this we expect a more stable business evolution with a broadly in line quarter (slight moderation in growth, better margins). Recent readthrough for SMB and back-office software space (US) appears steady, while other drivers in price increases and product expansion (regional & functionalities) remain intact," Tirupati said.

The analyst expects Sage's management to reiterate full-year guidance for growth and margins – though increased deal scrutiny by customers is possible if uncertainty persists.

"We see Sage as relatively insulated and maintain Buy on GARP appeal," Tirupati said.

Sage was trading broadly flat at 1,266p by 1102 GMT.

FTSE 100 ( UKX )

ISIN: N/A
Exchange: London Stock Exchange
Sell:
0.00
Buy:
0.00
Change: 6.25 ( 0.07 %)
Date:
Prices delayed by at least 15 minutes

Compare our accounts

If you're looking to grow your money over the longer term (5+ years), we have a range of investment choices to help.

View our accounts

Halifax is not responsible for the content and accuracy of the Markets News articles. We may not share the views of the author. Understand the risks, please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor. Past performance is not a guide to future performance.