(CercleFinance.com) – Jefferies raised its recommendation on SAP shares on Friday, from ‘hold’ to ‘buy’ with a price target raised to 190 euros compared to 135 euros previously.
In a research note, the broker recognizes that the group delivered mixed fourth quarter results, but says it is reassured by the level of order book it displays in its ‘cloud’ activities.
‘This continued dynamic in the ‘cloud’ means that SAP can now credibly claim growth of 10%-12% per year, compared to 8%-10% so far,’ he explains.
‘With growth of 12%, as we forecast for 2026, SAP would show growth in line with that of the American leaders such as Adobe, Intuit and Salesforce’, adds the American broker.
‘This factor should rule out any ceiling limiting its valuation in the short term,’ he concludes.
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