Sage - Another strong quarter, same debate

研报英文原文证据摘录

Sage - Another strong quarter, same debate

s performance was particularly encouraging because growth remained supported by multiple

drivers simultaneously: strong customer acquisition, resilient renewals and pricing, accelerating cloud-native adoption, improving

cloud-connected momentum, and continued strength across all major geographies. The combination of sustained double-digit

organic growth and particularly strong momentum in cloud-native solutions increases the likelihood that Sage could outperform

current consensus revenue forecasts for the full year.

BERNSTEIN VIEW

Sage delivered another strong quarter, reinforcing our view that demand for cloud ERP remains healthy and that the

company continues to execute well across its key growth drivers. However, while the operational performance was

encouraging, we do not believe it changes the broader investment debate. We therefore maintain our estimates, price

target of 1,050p and Market-Perform rating.

The bull case remains relatively straightforward. Sage continues to grow at a double-digit organic rate despite a more uncertain

macroeconomic backdrop. Growth was broad-based across geographies, with North America remaining strong and Europe

accelerating during the quarter. Importantly, cloud-native solutions continue to deliver exceptional momentum, while cloud-

connected products are also improving. This combination suggests that Sage is benefiting both from structural demand for cloud

ERP and from successful execution of its product strategy. Strong customer acquisition, stable churn, healthy renewal rates

and resilient pricing further support the argument that Sage's growth remains underpinned by solid fundamentals rather than

temporary factors.

EUROPEAN TECHNOLOGY/SOFTWARE 2