SAP (SAP GR) Germany
Technology
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.
Edition: 171
- 13 October, 2023
Fresenius SE (FRE GR) & Fresenius Medical (FME GR) Germany
Healthcare
Elliott has taken a stake in Fresenius SE, but the company’s top shareholder, the Else Kroner Foundation, is an obstacle to immediate value creation, a source told CTFN. As Elliott faces down the foundation, the activist could force a breakup of Fresenius Medical, a partially owned subsidiary of the company, or agitate for equity-dilutive M&A by subsidiary Kabi to improve its market share in the US. Bankers are already pitching the firm’s components to potential private-equity bidders, with subsidiary Vamed proving the toughest sell, the source said. Click here for the full story.
Edition: 148
- 11 November, 2022