Sage Group shares (LON: SGE) have been given a boost, with a new initiation of coverage seeing the price having plenty of room to run.
Oddo has tagged Sage with an ‘Outperform’ rating and a price target of 1,550 GBp, signalling a potential upside of over 25% from current trading levels. This optimistic assessment comes as Sage shares have underperformed markets, with the stock trading down approximately 2.78% since the start of the year.
The Oddo BHF initiation injects fresh confidence into the market, particularly as Sage navigates a landscape of mixed analyst sentiment and some insider selling activity. While the average analyst rating leading up to March 2025 was a ‘Hold,’ the new ‘Outperform’ rating suggests a shift toward a more constructive view of Sage’s prospects.
This positive outlook is further supported by Sage’s ongoing share buyback program, with the company recently purchasing 14,236 of its ordinary shares on July 7, 2025. This buyback initiative is designed to enhance shareholder value by reducing the number of shares in circulation and potentially boosting earnings per share.
Despite the overall positive financial indicators, including a 6.78% revenue increase to £2.33 billion and a 53.08% rise in earnings to £323 million in 2024, the company’s stock has underperformed.
Analysts continue to point to upside potential, with the average price target of 1,349p indicating ~8% growth.
The bullish signal from Oddo, combined with the share buyback program, suggests that markets see Sage actively working to enhance shareholder value and capitalize on its growth opportunities. The 1,550p price target implies a strong belief in Sage’s ability to execute its strategic vision and deliver on it’s promise.
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