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27 Jan
Shares in Sage Group (SAGE) are more hardware than software this morning after the company pleased traders with a glowing outlook. On track to meet organic revenue growth of 6% in 2016, performance appears to have been led by Europe where businesses are wallowing in a bath of easy money. Concerns about falling organic software (installed via floppy disk 
by a chap who comes to your office) revenues may well be capping share price gains around 600p this morning, but the company is transitioning from the aforementioned model to a more modern, cloud based one where customers pay a subscription. That means more stable, recurring revenues which already jumped 10% in Q1 2015.
Sage walked towards today’s open considerably undervalued. Investors should take care, as big moves like this can often be attributed to mania, but it’s clear that Sage will be one to watch (one of just two tech groups on the UK 100 to be precise) as it steps up to the mark to receive the competition – a wave of plucky hipster start-ups.
Augustin Eden, Research Analyst
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