STOCKS NEWS EUROPE-Sage Group lifted by Nomura initation

Shares in Sage Group (SGE.L) gain 1.8 percent as Nomura starts coverage on the firm with a "buy" rating and a 235 pence price target in a review of the European enterprise software sector.

Nomura says that most companies in the enterprise software universe are currently facing the most difficult trading conditions in their history.

The broker says it believes relative stock price performance in the sector over the next few months will be less driven by questions about long-term industry growth rates and more driven by medium-term earnings growth, sentiment and by either delivering a better outlook or disappointing less than expected.

Nomura points out that with expected annual earnings growth of close to 9 percent over the next three years, an improving outlook in the U.S., one of the sector's most defensive business models and the lowest valuations in the universe, it believes Sage is likely to outperform the sector.

Nomura starts coverage of Sage's UK peer Autonomy (AUTN.L) with a "neutral" rating and 1,560 pence target price, while in Europe it starts Software AG (SOWG.DE) with "neutral" stance and 50 eur target, and initiates Dassault Systemes (DAST.PA) with a "reduce" rating and 32 eur target.

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