SAP: Jefferies starts coverage with 'buy' rating
(CercleFinance.com) - Jefferies has started coverage of German enterprise software maker SAP with a "buy" rating, citing a "multi-billion euro" product cycle.
"Regardless of recent results, SAP is benefiting from the S/4Hana upgrade cycle, resulting in a multi-billion euro incremental revenue opportunity," it said in a note.
Jefferies wrote that guidance of a 500-basis points improvement in its operating margin by 2023 appears "easily achievable," with the majority stemming from cloud improvements alone.
"The vision around the recent Qualtrics acquisition is powerful and could create new market opportunities if properly executed upon," it added.
The US broker gave a target price of 138 euros to the SAP share.
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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.
"Regardless of recent results, SAP is benefiting from the S/4Hana upgrade cycle, resulting in a multi-billion euro incremental revenue opportunity," it said in a note.
Jefferies wrote that guidance of a 500-basis points improvement in its operating margin by 2023 appears "easily achievable," with the majority stemming from cloud improvements alone.
"The vision around the recent Qualtrics acquisition is powerful and could create new market opportunities if properly executed upon," it added.
The US broker gave a target price of 138 euros to the SAP share.
Copyright (c) 2019 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.