JP Morgan says The Sage Group PLC (LSE:SGE) is one of the better-placed software names in its coverage, citing scope for further upward revisions to consensus organic revenue growth estimates.
The broker said the accounting software group had been beating consensus growth forecasts for several quarters.
It noted that organic revenue growth had accelerated from 9% in the third quarter of 2025 to 10.3% in the second quarter of 2026.
JPM acknowledged that AI-native accounting competitors remained a concern for investors.
But it argued that actual revenue generation from those players was still small, with their focus concentrated in the software-as-a-service vertical, a relatively small exposure for Sage.
The bank added that feedback from industry forums and experts pointed to still-maturing functionality among some of these challengers.
It said Sage offered modest upside to consensus growth, recent acceleration in that growth, and a consensus that built in only a relatively modest level of margin expansion.
That combination, JP Morgan argued, left the company well placed relative to expectations.
The bank contrasted this with SAP, where it saw consensus margins as more elevated and cloud backlog growth as slowing.
JPM lifted its own organic revenue growth forecast for the 2026 financial year to 10%, from 9.4% previously.
That estimate sits slightly above the current consensus
