SAP: Credit Suisse maintains rating

(CercleFinance.com) - Following the announcement of lower-than-expected quarterly results and a FY profit warning, Credit Suisse has confirmed its outperform rating on the SAP share, along with its target price of 157 euros (60% upside from current price, which is down nearly 22%).


"SAP's 3Q20 results show revenues that are 5% below consensus. Meanwhile 3Q20 EBIT is 2% below cons, reflecting 1.1% margin expansion," Crédit Suisse says.

FY 2020 EBIT estimates have been lowered to 8.1-8.5 billion euros from 8.1-8.7 billion euros.

"Management now expects broadly flat operating profit for the next 2 years. Based off the FY20 guidance, that implies FY22 EBIT of cE8.05bn, c24% lower than VARA cons. Meanwhile, as the benefits of the shift to cloud and investment kick in, management expects EBIT growth of c13% from FY23-25 to drive EBIT of at least E11.5bn in FY25," analysts add.


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