SAP (SAP GR) Germany
Report by AIR Capital
SAP is guiding for cloud revenues to reach €14.1bn (+25% Y/Y) in FY23, suggesting growth will be far stronger in H2 vs. H1, in total contradiction with the current economic slowdown and competitors’ recent comments. Pierre-Olivier Essig struggles to share management’s bullishness which has led to him downgrading the stock to Sell (from Buy). His new TP is €100 (previously €140).
AIR continues to boast an enviable track record with impressive gains on Buy-rated stocks including Aixtron, Meier Tobler, Novo Nordisk and Rolls-Royce, as well as shorts including Fresenius Medical Care and Grifols.