Berenberg reaffirms its ‘buy’ recommendation on SAP with a target price of 110 euros, after the announcement of the arrival, in March 2023, of Dominik Asam as Chief Financial Officer (CFO) of the German enterprise software publisher .
‘Feedback from our investor base suggests that the lack of a CFO succession plan has weighed on SAP stock; this announcement should therefore be welcomed positively,’ the broker believes, judging that it gives the direction long-term stability.
“It also increases the likelihood of a revision of medium-term objectives,” adds Berenberg, who sees this as another catalyst for the stock, as well as a continuation of the good performance of the cloud in the third quarter (results expected on October 25). .
Jefferies also confirms its advice to buy on the stock with a target price of 105 E. The analyst believes that this appointment is wise because he is a person already known and respected by shareholders.
However, the debate risks quickly focusing on medium-term objectives. SAP has already indicated that they will be revised upwards in the coming quarters, but it is unlikely that the new CFO will be able to take charge of them before the summer of 2023, ‘says Jefferies.
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