SAP: UBS reiterates its buy recommendation
(CercleFinance.com) - UBS reiterates its buy recommendation on the stock and leaves its target price unchanged at 283 E, which represents a potential upside of 9%.
'We continue to see a significant gap in SAP's billing levels compared to its competitors. Closing this gap would improve cash generation. The details of the Long Term Incentive Plan (LTIP) imply cloud growth of around 29% in 2026' says UBS.
For fiscal 2025, SAP expects non-IFRS operating income of 10.3 to 10.6 billion euros, as well as cloud and software sales of 33.1 to 33.6 billion, with a slight slowdown in current cloud order book growth.
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