SAP: Morgan Stanley maintains 'overweight' rating.
(CercleFinance.com) - In a research note issued to investors on Tuesday analysts at Morgan Stanley reiterated their "overweight" rating on the SAP stock, along with their target price of 102 euros.
The brokerage firm points out that the German group's accelerating top line has made investors more comfortable with the business software maker's revenue growth story and that the focus should now shift towards margin expansion as the next driver.
"Over the next 18 months, we think slower headcount adds and higher cloud gross margins are the key tailwinds to reverse margin declines," Morgan Stanley wrote in the report.
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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.
The brokerage firm points out that the German group's accelerating top line has made investors more comfortable with the business software maker's revenue growth story and that the focus should now shift towards margin expansion as the next driver.
"Over the next 18 months, we think slower headcount adds and higher cloud gross margins are the key tailwinds to reverse margin declines," Morgan Stanley wrote in the report.
Copyright (c) 2017 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.