SAP: still a top pick for Credit Suisse

(CercleFinance.com) - Credit Suisse maintained its "outperform" rating on SAP on Friday, citing the German software maker's "underappreciated" portfolio and resilience.


In a note to clients, the broker pointed out that enterprise IT spending continues to look resilient, even though back-office cracks are starting to emerge.

This recent weakening would suggest that back-office continues to be less of a priority than other areas, such as business intelligence/analytics, artificial intelligence/machine learning, cloud and security, it said.

As a result, Credit Suisse said it cut its price target on the stock from 141 euros to 121 euros.

But the broker said it also sees SAP's portfolio breadth as a source of resilience and also noted that the company's S/4Hana product cycle is accelerating.

SAP remains its "top pick" in the European software industry.

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