(News Bulletin 247) – Stifel confirms its buy rating on Stifel shares, with a price target raised from 135 to 145 euros.
Analyst reports SAP delivered strong cloud performance in Q1, with S/4HANA CCB growing +79%, Group CCB +25% and cloud gross margins up 290 bps on a year.
Meanwhile, Stifel said he was “encouraged” by management’s upbeat comments. This confidence is also driven by the strong visibility of the Cloud business model, and the planned ramp-up of major ‘RISE with SAP’ transactions.
Based on – among other things – the restructuring already underway and the benefits of economies of scale, Stifel estimates that the underlying gross margin of SAP’s cloud business should grow by around 400 pb by the end of the fiscal year.
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