SAP: Stifel still a buyer
(CercleFinance.com) - Stifel maintains its buy rating on SAP shares, along with its target price of E145.
"1Q24 performance was strong globally across all solutions and all geographies", the analyst notes.
Stifel remains optimistic that sales will accelerate "on the back of the double-digit 1Q23 Current Cloud Backlog growth... and management's optimistic commentary on a ramp-up of large contracts and cross-selling of key cloud solutions".
Cloud revenues are expected to increase by 24% in 2023 "and continue growing at c.25% in FY24-25E", the analyst points out.
"Cloud gross margins should expand in FY23E and beyond on the back of the cloud infrastructure harmonisation and scale benefits", the broker added.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
"1Q24 performance was strong globally across all solutions and all geographies", the analyst notes.
Stifel remains optimistic that sales will accelerate "on the back of the double-digit 1Q23 Current Cloud Backlog growth... and management's optimistic commentary on a ramp-up of large contracts and cross-selling of key cloud solutions".
Cloud revenues are expected to increase by 24% in 2023 "and continue growing at c.25% in FY24-25E", the analyst points out.
"Cloud gross margins should expand in FY23E and beyond on the back of the cloud infrastructure harmonisation and scale benefits", the broker added.
Copyright (c) 2023 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.