SAP: stock boosted by broker double upgrade

(CercleFinance.com) - On Wednesday SAP shares jumped on the Frankfurt Stock Exchange, boosted by BofA upgrading its rating on the share directly from "underperform" to "buy".


At 3:45 pm, the German IT giant's stock was up 3.9%, holding the silver medal in the DAX index. YTD, SAP shares have risen by over 16%, just edging the DAX, which itself has increased 14%.

In their comments, analysts at Bank of America say that they expect a stockmarket re-rating of the enterprise software developer after its growth took off, in addition to accelerating momentum in the cloud.

BofA says that it has seen strong customer loyalty and a high market appetite for both SaaS and cloud offerings.

All these observations have led it to boost its target price for the share from 92 euros to 150 euros.


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