SAP: Oddo still a buyer after targets confirmed

(CercleFinance.com) - Broker Oddo maintains its buy rating on the SAP stock, along with its target price of 112 euros, after the group confirmed its FY targets.


Management has confirmed the group's sound momentum, both in terms of organic growth (organic growth of 7% to 8% seems sustainable, with 30% in the Cloud and c. 3% On Premise), improvement in margins and generation of FCF from 2019. With the first signs of this expected in H2 2018, Oddo said.

SAP has praiseworthy ambitions: real gains in market share gains should be seen in the next 2 years, the time that integrators come onstream, although SAP's go to market makes it possible to anticipate a financial impact as from this year, analysts add.

Oddo is sticking to its forecasts, which are in line with the top of the group's guidance range.



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