Sap: Stifel still buying with TP price of E245

(CercleFinance.com) - Stifel has maintained its Buy rating on SAP shares, with a price target of E245.


The analyst believes that SAP has published another set of solid and reassuring Q3 results, despite the difficult economic climate.

Cloud sales growth in Q3 accelerated to 27% y-o-y, helped by 36% growth in the ERP Cloud suite, while the Cloud gross margin continued to improve to 73.7%, the broker notes.

Stifel is therefore raising its FY24 guidance, expecting Cloud+Software segment growth of 10%-11% (vs. 8¨%-10%), operating profit of E7.8bn-E8bn (vs. E7.6bn-E7.9bn), and FCF of E3.5bn-E4bn (vs. approx. E3.5bn).

Cloud growth guidance for FY24 remains unchanged at 24%-27%, the analyst adds.¨


Copyright (c) 2024 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.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.