The Sage Group PLC (LSE:SGE) is back in focus at Citi, which has refreshed a positive investment case for the accounting software firm.
The investment bank said Sage has shown resilient performance despite economic uncertainty. While concerns around slower growth and AI disruption have weighed on sentiment, Citi sees scope for improvement.
“Sage has been delivering rather resilient results in an uncertain backdrop; however, small moderation in growth and AI disruption-related concerns have been stock overhangs. Our work supports confidence that Sage has right levers to sustain the growth, and potential to accelerate in a better macro set-up,” the note said.
Citi expects Sage’s AI developments to become more visible in the financial year 2026. It is 7–10% ahead of consensus on earnings per share and free cash flow forecasts for FY26 and FY27.
The firm has opened a positive catalyst watch for the financial year 2025.