Sage Group revised downwards its organic revenue growth expectation from c.+8% to c.+7% for FY2017/18. The downgrade was attributable to execution below management’s expectation in Q2 17/18. Sage Group was affected by the slowdown of software subscription revenue and the slippages of some licence contracts. We maintain a positive recommendation on the stock whose share price dropped sharply since January 2018. Now, the restoration of confidence could take some time.
13 Apr 2018
The risk of too much ambition
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The risk of too much ambition
Sage Group plc (SGE:LON) | 1,164 -110.6 (-0.8%) | Mkt Cap: 11,693m
- Published:
13 Apr 2018 -
Author:
Hélène Coumes -
Pages:
3
Sage Group revised downwards its organic revenue growth expectation from c.+8% to c.+7% for FY2017/18. The downgrade was attributable to execution below management’s expectation in Q2 17/18. Sage Group was affected by the slowdown of software subscription revenue and the slippages of some licence contracts. We maintain a positive recommendation on the stock whose share price dropped sharply since January 2018. Now, the restoration of confidence could take some time.