SAP: UBS hails a 'very strong quarter'
(CercleFinance.com) - UBS reiterates its buy rating on the SAP stock with a target price of E130 after the group announced its results, in addition to solid growth in its order book.
"Q1 was very solid, showcasing the tailwinds SAP has from the S/4 HANA upgrade cycle and multi-year RISE cloud transformation contracts," the broker said.
Results were strong, with backlog growth of 25% (Q4 24%). The changes in guidance are purely mechanical for Qualtrics, it adds.
Due to the planned disposal of Qualtrics, its survey platform subsidiary, Europe's leading software company has reduced its annual guidance.
It now expects non-IFRS operating profit of 8.6-8.9 billion euros, compared with 8.8-9.1 billion euros previously, while its annual cash flow is now expected to be around 4.9 billion euros, compared to 5 billion euros previously.
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