Software company Sage (LSE: SGE) jumped 4% during the London session to reach its highest level in over twenty years at 909.4p. This surge was fueled by JP Morgan analysts, who have shown their support for the company, backing it to reach an impressive 1100p.
The recent upgrade from City analysts follows a promising update in May, where Sage highlighted strong progress in rolling out cloud-based accounting services to its growing base of SME business customers.
The significant 20% surge in Sage’s valuation throughout 2023 mirrors the recent outperformance of technology and growth stocks in the United States. Notably, Meta Platforms and semiconductor firm Nvidia experienced a 3% increase in stock value on Tuesday night.
However, after the market closed, some of Sage’s momentum was dampened by reports suggesting that the Biden administration plans to tighten exports of AI chips to China. This news had an impact on the stock’s performance, causing a slight decline.
Sage’s impressive performance today played a role in boosting the overall FTSE 100 index, which gained 28.81 points, reaching a value of 7490.27. Additionally, Vodafone saw an increase of 1.3p, trading at 74p.
On the downside, Admiral shared dropped 4% after JP Morgan placed the company on a “negative catalyst watch,” which contributed to the market’s negative sentiment.
In the housing sector, Persimmon, saw a slight weakening, losing half a penny and reaching 1044.5p. Deutsche Bank’s downgrade of its price estimate to 1000p raised concerns about Persimmon’s exposure to first-time buyers amid the current mortgage squeeze. The company’s valuation is now at its lowest point in a decade, having plummeted by 40% since last summer.
Meanwhile, the FTSE 250 index has ticked higher, rising by 127.56 points to reach a value of 18,182.40. Cruise ship operator Carnival witnessed a notable increase of 30p, bringing its stock value back to its pre-Monday sell-off level at 1136p. Additionally, Wizz Air saw a rise of 77p, reaching 2872p, following RBC’s reveal of a 3900p target.