Jefferies Forecast: SAP Stock Carried by Clouds

In the lofty heights of cloud technology, a sunny outlook for the stock of the German software giant SAP is emerging. The analysis firm Jefferies is sending out a strong buy signal and adjusts the price target upwards to 190 euros, corresponding to a correction of a substantial 55 euros. The experts see a significant boost from the cloud business, which is developing at an impressive pace and could provide dynamic growth for the industry leader from Walldorf. Analyst Charles Brennan outlines a very positive scenario in his latest publication, in which SAP can now anticipate annual growth of 10 to 12 percent, instead of just 8 to 10 percent. This figure breaks down expectations and puts SAP on par with American giants such as Salesforce, Adobe, and Intuit. Particularly in this competitive environment, this means that SAP does not have to fear a visible upper limit in valuation. The reasons for optimism are not only to be found in the sky: The sustainable calculation of free cash flow provides the foundation for Jefferies' adjusted assessment. The robust foundation, combined with the stormy growth prospects in the cloud, leads Brennan to give a thumbs up and prompts investors to reconsider their portfolios. In this case, the cloud could determine just how golden the future may look for SAP shareholders.