- The Sage Group
- 10 October 2025 09:19:33
Source: Sharecast
Citi said Sage has been delivering rather resilient results in an uncertain backdrop, however, small moderation in growth and AI disruption related concerns have been stock overhangs.
The bank said it had revisited its positive investment thesis with a detailed look at the demand environment (SMEs) as well as bottom-up building blocks of Sage’s growth.
"Our work supports confidence that Sage has right levers to sustain the growth, and potential to accelerate in a better macro set-up," it said. "AI would remain key topic of debate, at the same time Sage efforts on bringing and commercialising AI use cases should be more visible in FY26."
Citi noted that the shares have underperformed year to date and said it sees scope for consensus upgrades.
The bank is 7-10% ahead on FY26-27E earnings per share/free cash flow.
Citi maintained its ‘buy’ rating and 1,500p price target on the stock.
At 0910 BST, the shares were up 2.4% at 1,139p.