Shares in The Sage Group PLC (LSE:SGE), the Newcastle-based accounting software company, were trading sideways after a downgrade from a leading investment bank.
Barclays Capital changed its recommendation to 'underweight' from 'neutral', stating: "ARR [annual recurring revenue] growth and the pace of margin expansion peaking, combined with an elevated valuation, all suggest it's as good as it gets for Sage shares."
Its price target is 985p, which is a 14% discount to the current share price of 1,151p. In the past year, Sage has seen its value increase by almost 50%.