Sage Group: Updating our model - still a medium-term play

NEUTRAL, Fair Value 540p vs. 520p (0%)
News published on November Friday 13, 2015
Share on

We reiterate our Neutral rating and increase our DCF-derived fair value to 540p from 520p on the rollover of our model to FY16 (+20p). While we consider there is no big challenge for achieving at least 6% lfl revenue growth and an operating margin of 28% for FY15, Sage constitutes a medium-term play as the ’Sage 2020’ transformation plan is expected to accelerate profitability improvement from FY18. Following a 16% YTD share price increase, the stock is fairly valued in our view.

For more information, please contact  

The Essentials

Everything you need to know about investment banking dedicated to growth
Recent Transactions Highlights
From M&A, to IPOs see what’s been happening at Bryan, Garnier & Co this year
Join our Team
Bryan, Garnier & Co is always looking for talent in all our divisions, at all levels
Explore our opportunities