(News Bulletin 247) – Stifel remains Buy on the SAP stock and maintains its target price of 145E.
‘The performance of the 1st quarter was strong in all geographical areas’, notes the analyst’s entry.
Stifel remains bullish on revenue acceleration ‘thanks to double-digit cloud backlog growth in Q1 23 and optimistic comments from management regarding the ramp-up of large contracts and cross-selling key cloud computing solutions.
Cloud revenue is expected to grow 24% in 2023 ‘and continue to grow at around 25% in 2025’, the analyst said.
“Cloud computing gross margins are expected to increase from FY23 onwards thanks to the harmonization of cloud computing infrastructure and the advantages of scale,” the broker further underlines.
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