Sage Growth continues to trend above expectations; scope for modest upside to consensus organic growth

研报英文原文证据摘录

Sage Growth continues to trend above expectations; scope for modest upside to consensus organic growth

C A Z E N O V E Europe Equity Research

24 June 2026

Sage Overweight

SGE.L, SGE LN

Growth continues to trend above expectations; scope Price (23 Jun 26):806p

for modest upside to consensus organic growth ▼Price Target (Dec-27):1,000p Prior (Dec-27):1,100p

Whilst the software sector continues to face challenges, we see Sage as one of the

better positioned within our coverage near-term given scope for continued steady European Tech Software & IT

Servicesupward revisions to consensus organic revenue growth estimates. Sage has been

outperforming consensus growth estimates for a number of quarters now and has Toby Ogg AC

seen its organic revenue growth y/y accelerate from 9.0% in Q3’25 to 10.3% in (44-20) 7742-3278

toby.ogg@jpmorgan.com

Q2’26. While AI-native accounting competitors remain a concern for investors, J.P. Morgan Securities plc

we think actual revenue generation from these players remains small and their

Joseph George

focus is more concentrated in the SaaS vertical, which is a relatively small exposure (44-20) 3493-6990

for Sage. Feedback from forums and experts also highlights signs of still maturing joe.george@jpmorgan.com

functionality in some of these players. With modest upside to consensus growth, J.P. Morgan Securities plc

recent growth acceleration and a consensus that has a relatively modest level of Priya R Suneja

margin expansion built in, we think Sage is one of the better placed in terms of the (91-22) 6157 4721

setup relative to consensus estimates (versus SAP where we see consensus margins priya.suneja@jpmchase.com

more elevated and current cloud backlog is slowing). We lift our organic revenue J.P. Morgan India Private Limited