SAP: Jefferies cuts target price

(CercleFinance.com) - Jefferies maintains its "buy" rating on SAP shares, having reduced its target price for them to 110 euros, compared with 120 euros previously.


Although it maintains its forecasts for 2022/23 unchanged, the broker has lowered its forecasts for Q2 2022 by 8%, i.e. 3% below the consensus.

Jefferies said that management had nevertheless warned about the slowdown in Q2 and was largely anticipated by buyers. As such the broker sees the uncertainty around Q2 as a buy opportunity.

Finally, Jefferies notes that with the acceleration of cloud revenues, the proportion of licences in total revenues has fallen from 22% in FY 2016 to just 8% in FY 2022, a trend that makes SAP less cyclical than in the past.


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