Broker tips: Sage, Glencore, Debenhams

4th Dec 2014 12:14

Sage's shares were extending gains on Thursday after the accountancy software group impressed the market with its annual results, with the stock given a boost by target price upgrades at both Citigroup and Credit Suisse.Citi raised its target for the shares from 450p to 475p and kept a 'buy' rating, saying that Sage's in-line results "reflect[ed] continued recurring revenue momentum that in turn was underpinned by accelerating subscription dynamics".Meanwhile, Credit Suisse lifted its target for the shares from 355p to 385p, but kept an 'underperform' rating, saying that the company has to invest more to stay competitive.Liberum has lowered its recommendation on commodities trader and mining giant Glencore from 'hold' to 'sell', saying it is "going cold on coal".The broker said Glencore has a "stretched net present value valuation" and the outlook for both coal and copper - Glencore's largest earnings contributor - is weak.The share price of Debenhams dropped on Thursday after the stock went ex-dividend, though comments from N+1 Singer were likely adding to the selling pressure as the broker downgraded its rating on the retailer from 'buy' to 'hold'.After a recent run in the stock, the broker believes that the shares will "pause" as the market awaits evidence that Debenhams' strategy of re-orientating towards full-price sales is working.