(CercleFinance.com) – SAP shares gained ground on Friday on the Frankfurt Stock Exchange thanks to a note from Jefferies in which the broker believes that the growth of the German software giant cannot be doubted.
Around 1:30 p.m., the value increased by 0.9%, while the DAX index advanced by 0.8%. With a gain of more than 17% since January 1, the stock has so far recorded the second best annual performance in the index, behind Siemens Energy (+19%).
In a research note, Jefferies acknowledges 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 broker.
‘This factor should rule out any ceiling limiting its valuation in the short term,’ he concludes.
Under these conditions, Jefferies raises its recommendation from ‘hold’ to ‘buy’, with a price target raised to 190 euros compared to 135 euros previously.
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