Sage surges on UBS upgrade, though concerns remain

Iain Gilbert WebFG News | 16 Aug, 2017 15:27 | | |

sage 06
  • 759.00
  • -0.59%-4.50
  • Max: 764.00
  • Min: 750.50
  • Volume: 2,133,951
  • MM 200 : n/a
17:18 17/11/17
  • 7,380.68
  • -0.08%-6.26
  • Max: 7,406.53
  • Min: 7,356.16
  • Volume: 0
  • MM 200 : n/a
17:30 17/11/17
  • 3,447.79
  • -0.30%-10.25
  • Max: 3,458.03
  • Min: 3,438.62
  • Volume: 0
  • MM 200 : n/a
17:18 17/11/17
  • 2,405.48
  • -0.45%-10.88
  • Max: 2,420.60
  • Min: 2,392.08
  • Volume: 0
  • MM 200 : n/a
17:18 17/11/17
  • 4,102.67
  • -0.12%-4.73
  • Max: 4,116.61
  • Min: 4,089.64
  • Volume: 0
  • MM 200 : n/a
17:18 17/11/17
  • 4,051.78
  • -0.11%-4.62
  • Max: 4,065.06
  • Min: 4,039.36
  • Volume: 0
  • MM 200 : n/a
17:25 17/11/17
  • 4,553.63
  • -0.31%-14.14
  • Max: 4,567.77
  • Min: 4,536.25
  • Volume: 0
  • MM 200 : n/a
17:18 17/11/17

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

17 Nov Europe close: Stocks slip going into the weekend

Stocks reversed early gains as investors opted to play it safe going into the weekend and the euro edged a tad higher on the back of the political gyrations on Capitol Hill.

17 Nov Europe open: Stocks start slightly higher, analysts wary

Stocks have started the morning trading slightly higher, tracking overnight gains on Wall Street but analysts are worried about buying into Thursday's bounce.

17 Nov London close: Stocks finish week on down note

London's top flight index slipped on Friday, but managed to finish well-off its lows of the session despite renewed Brexit angst as the pound gave back early gains.

17 Nov Kingfisher gets RBC upgrade as 'reasons to be cheerful' in France

DIY retailer Kingfisher has more "reasons to be cheerful" thanks to an improving French outlook, analysts at RBC Capital Markets said on Friday, while clothes seller Supergroup remains "compelling" but its shares have gained a lot in recent weeks.

17 Nov NAV on the rise as Alpha Real Estate Trust turns focus to build-to-rent market

Real estate investment group Alpha Real Trust saw its net asset value (NAV) rise in its first half of trading as it moved to make further investments in build-to-rent projects.

17 Nov Pacific Industrial & Logistics completes sale of Bedford asset

Industrial and logistics-focussed real estate investment trust Pacific Industrial & Logistics has completed the sale of an asset located at Hammond Road, Bedford, for a total consideration of £5.8m, it announced on Friday.

17 Nov DP Poland cuts ribbon on 50th Polish Domino's store

DP Poland, which holds the exclusive master franchise for the Domino’s Pizza brand in Poland, celebrated the opening of its 50th location in the country on Friday.

17 Nov Mercia Technologies makes new investment into Aston EyeTech

National investment group Mercia Technologies has made a new direct investment into Aston EyeTech - a spinout from Aston University, Birmingham - which has developed a range of proprietary hardware and software products in ocular care, it announced on Friday.

17 Nov SimiGon receives final approval for $2m Israeli Air Force order

Modelling, simulation and training solutions provider SimiGon has now received final regulatory approval for a $2m purchase order received from the Israeli Air Force, initially announced on 20 June 2016, it confirmed on Friday.

17 Nov Agriterra losses grow after 'subdued' interest in corn products

Agricultural investment group Agriterra saw losses widen in the first half of its trading year as subdued demand for its maize flour products slashed revenues by more than a third.