Sage Group: Bryan Garnier upgrades rating to 'neutral'.

(CercleFinance.com) - Bryan Garnier has upgraded its rating on Sage Group to "neutral" from "sell", although has cut its fair value on the stock from 690 to 645 pence after results for the year to end-September 2016.


"The shares are now trading at more reasonable levels and Sage is maintaining the course of its transformation plan, but we do not expect a like-for-like growth acceleration for fiscal year 2017 due to the fall in perpetual licence sales", explains the broker.

Bryan Garnier says that in any case such a transformation would require further exceptional costs.

The broker has trimmed EPS estimates by 1% for fiscal years 2017 and 2018, followed by 2% for 2019, due to FX factors, higher net debt due to restructuring costs and new assumptions for working capital requirement.

Copyright (c) 2016 CercleFinance.com. Tous droits réservés.