Broker snap: UBS downgrades Sage to neutral

31st Oct 2011 11:57

UBS has downgraded accountancy software firm Sage from buy to neutral, saying that there are few catalysts for the stock in the near future."[Shares] are still 6% below their 2011 highs but we see limited catalysts near-term, with the buyback likely to provide downside protection but little more. An announcement accompanying the start of the buyback indicating that the company was not in possession of any price-sensitive information means FY11 results (due 30 November), should be in-line," said analysts Michael Briest and Chris Grundberg.UBS notes that while the macro backdrop looks largely stable, there are no signs of improvement: "We are tracking a slight increase in insolvency statistics in the UK (4,276 in the June quarter versus 4,094 last year), and the US National Federation of Independent Business (NFIB) data points to slightly tighter credit in recent months although capex plans have held relatively constant and business optimism has 'stabilised'."The target price is left at 275p.Shares were down 1.72% at 280.1p by 11:57.BC