Peel Hunt upgrades UK's Sage Group to ‘buy’ after robust results

Sage group

21/05/2026 09:40

** Peel Hunt upgrades  Sage Group SGE.L  rating to "buy" from "hold"; trims PT to 1,165p from 1,187p

** Co's H1 underlying revenue rose 11% y/y, driven by cloud growth

** "Margin expansion continues apace despite reinvestment, reflecting AI-led productivity gains. This will likely be the source of earnings upgrades"- Peel Hunt

** Trims PT as brokerage expects peers to narrow valuation gap with Sage

** Shares of software firm fall nearly 3% to 869.80p

** Reuters could not establish reason for fall

** Average rating of 21 analysts is "buy"; with a median PT of 1,122.5p - data compiled by LSEG

** Up to last close, the stock has fallen nearly 20% YTD

(Reporting by Akriti Shah in Bengaluru)

((akriti.shah@thomsonreuters.com ; X, formerly Twitter: @AkritiShahh)))