Sage surges on UBS upgrade, though concerns remain

Iain Gilbert Sharecast | 16 Aug, 2017 15:27 | | |

sage 06
  • 702.50
  • -0.35%-2.50
  • Max: 707.00
  • Min: 701.50
  • Volume: 1,518,070
  • MM 200 : n/a
17:19 19/09/17
  • 7,275.25
  • 0.30%21.97
  • Max: 7,285.67
  • Min: 7,243.59
  • Volume: 0
  • MM 200 : n/a
17:19 19/09/17
  • 3,431.23
  • 0.37%12.79
  • Max: 3,433.98
  • Min: 3,416.99
  • Volume: 0
  • MM 200 : n/a
17:19 19/09/17
  • 2,215.38
  • 0.72%15.76
  • Max: 2,223.97
  • Min: 2,196.29
  • Volume: 0
  • MM 200 : n/a
17:19 19/09/17
  • 4,044.78
  • 0.34%13.58
  • Max: 4,049.50
  • Min: 4,027.12
  • Volume: 0
  • MM 200 : n/a
17:19 19/09/17
  • 3,994.36
  • 0.32%12.78
  • Max: 3,999.03
  • Min: 3,977.83
  • Volume: 0
  • MM 200 : n/a
17:19 19/09/17
  • 4,510.40
  • 0.32%14.36
  • Max: 4,516.54
  • Min: 4,493.58
  • Volume: 0
  • MM 200 : n/a
17:19 19/09/17

Accountancy and payroll software company Sage Group was on the receiving end of an upgrade to 'neutral' from UBS on Wednesday.

The Swiss bank felt the recent purchase of cloud software business Intacct was a sage move.

The recent acquisition of Intacct, while coming at a cost of $850m was the reason for the Swiss bank's change of heart, saying the purchase of business should add 170 basis points to group growth, but could potentially harm margins by as much as 240 basis points.

Analyst Michael Briest was still concerned with Sage's lack of investment in its research and development department, saying "less than 10%" of revenues were being diverted to the wing.

"The margin targets it has set itself means we do not expect this to change and balance sheet led catch-ups (such as Intacct) may well recur," said Briest.

As of 1445 BST, shares crept up 3.44% to 706.50p.

More news

19 Sep US close: Markets finish higher as Trump addresses UN

Stocks on Wall Street finished higher on Tuesday as investors listened in on a speech by the American president to the United Nations general assembly, and ahead of the US Federal Reserve's policy decision the next day.

19 Sep Credit Suisse upgrades Tullow Oil, downgrades Ophir Energy

Analysts at Credit Suisse rejigged their recommendations for European Exploration and Production outfits, telling clients the sector was better positioned to emerge from the cycle, while its year-to-date de-rating had made it more "attractive".

19 Sep Results round-up

Online grocery specialist Ocado reported a slight acceleration of growth in the third quarter of the year but comments about a short-term spike in costs hit the shares on Tuesday.

19 Sep Investec says Debenhams dividend may be unsustainable

Investec reiterated its 'sell' recommendation on Debenham's on the back of expectations for foreign exchange headwinds, unanswered questions around execution and profitability and the ongoing shift towards 'on-line'.

19 Sep London close: FTSE higher on the day, investors wait for Fed statement

Shares finished higher on Tuesday as the pound gave up early gains against the dollar.

19 Sep Europe close: Stocks end with slight gains ahead of Fed

Stocks finished slightly higher as investors listened-in on a speech by US president Donald Trump at the United Nations and waited on the result of the US central bank's policy decisions the next day.

19 Sep BlueRock Diamond nearing monthly target production

BlueRock Diamonds, the diamond mining company and operator of the Kareevlei Diamond Mine in the Kimberley region of South Africa, said it was nearing its target of 25,000 tonnes of production per month.

19 Sep FTSE 100 movers: Food retailers rise on sales, GlaxoSmithKline softens

The FTSE 100 was in the green on Tuesday afternoon, as the pound gave up early gains against the dollar.

19 Sep Swallowfield boosts operating profit 180%, appoints new finance director

UK-based personal care and beauty products group Swallowfield announced on Tuesday that it had grown both full-year profits and revenue.

19 Sep Inland Homes makes outline planning application on Wilton Park

Brownfield-focussed housebuilder Inland Homes announced on Tuesday that it has made an outline planning application on its 100-acre flagship development site ‘Wilton Park’ in Beaconsfield, Buckinghamshire.