Broker snap: Sage is 'back in the game'

19th Jan 2011 10:26

Sage is "back in the game," according to Panmure Gordon, after Tuesday's launch of a new product set out its stall as a modern growth-orientated software business.Sage launched Sage One which offers three different services to small- to medium-sized enterprises and their accountants: cashbook (managing customers, suppliers, transactions, banking, etc.); accounts (invoices, online VAT returns, etc.); and accountant edition (giving accountants anytime/anywhere access to client data, etc.)The group currently trades on a subsector valuation, with a price-to-earnings valuation of 13.9 against a sector on 16.5, but analyst George O'Connor says that "a growth-orientated product set should address the valuation gap.""Sage One gives CEO Guy Berruyer something to crow about at the first quarter IMS which would otherwise have been a relatively drab 'trading in line' affair," adds O'Connor.Ahead of the interim management statement (IMS) later this month, the broker expects the company to report that trading is in line with expectations. Panmure maintains its 'buy' rating and target price of 334p.