SAP : Oddo BHF raises target price

(CercleFinance.com) - While maintaining its 'neutral' opinion on SAP, Oddo BHF is raising its target price from E160 to E188, in anticipation of a quarterly publication (22 April) which it expects to be solid at the topline, but more mixed in terms of margins and FCF.


The broker has raised its growth forecasts by 1.8 point for 2025 and 2026 for the German software company, to take better account of the impact of migration to the cloud, i.e. an increase of 3% and 5% in its EPS estimates.

The stock's rerating can ultimately be justified, and SAP's valuation is not really stretched, although its risk/reward is not attractive at current levels, the analyst says, adding that sell-side consensus expectations seem "toppish".


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