UBS analyst Michael Briest upgraded SAP SE to Buy from Neutral with a price target of EUR 147, up from EUR 130, implying an 8.6 percent upside.
The analyst believes a reacceleration of cloud growth will drive a re-rating of the shares in 2022.
Briest is more confident in the benefit to revenues from backlog added during 2021 and says a value case can also be made for SAP.
‘As the stock has underperformed since the start of the year, we see cloud acceleration in 2022 to 24 percent and some traction with RISE pushing SAP stock up next year,’ the broker said.
Founded in 1972 by former International Business Machines Corp. employees, SAP provides database technology and enterprise resource planning software to enterprises worldwide.
By Anusuya Lahiri
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