Sage Group (SGE.L): Sustained topline organic growth and margin expansion to remain key for re-rating; Neutral

研报英文原文证据摘录

Sage Group (SGE.L): Sustained topline organic growth and margin expansion to remain key for re-rating; Neutral

Equity Research

29 July 2026 | 5:01PM BST

Sage Group (SGE.L): Sustained topline organic growth and margin

expansion to remain key for re-rating; Neutral

We update our estimates post Sage’s 3QFY26 trading update, which saw Mohammed Moawalla

+44(20)7774-1726 |

better-than-expected organic revenue growth, with the company highlighting a mohammed.moawalla@gs.com

Goldman Sachs International

broadly stable demand environment, cross-sell and up-sell momentum in Sage

Deepshikha Agarwal

Intacct and Sage 50, and favourable pricing dynamics. Accordingly, we modestly +1(212)934-6961 |

increase our total organic revenue growth estimates to 10.0% (vs. 9.8% previously) deepshikha.agarwal@gs.comGoldman Sachs India SPL

for FY26E, and to 9.5% total organic (vs. 9.1% previously) for FY27. We keep our Uzair Merchant

outer-year growth forecasts unchanged, but modestly increase our margin estimates +44(20)7774-7645uzair.merchant@gs.com|

across our forecast. Goldman Sachs International

Ahlam Haouach

While risks to application software players from AI remain, we await evidence of how +44(20)7051-8714ahlam.haouach@gs.com|

horizontal SaaS companies such as Sage garner traction among new and existing Goldman Sachs International

customers via cross-sell and up-sell of an agentic offering over the mid-term. Given

the slight increase in estimates and valuation roll-forward, our 12-month price target

increases to 1,150p, as we also modestly increase our target multiple, reflecting the

better-than-expected quarter and FY26 guidance which we view as broadly

de-risked. We remain Neutral rated on Sage, as we believe the current valuation