SAP SE

SAP: XETR (DEU)

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SAP Earnings: Cloud ERP Strength From New and Old Customers; Raising FVE to EUR 150 From EUR 141

Julie Bhusal Sharma

Oct 22, 2024

We are raising our fair value estimate for SAP to EUR 150 per share from EUR 141 per share after the firm reported third-quarter results well above our expectations and an upped outlook for the remainder of the year. Cloud ERP strength was largely due to existing and net new customer wins. Despite the pleasing results from the quarter and rosier outlook, we still view shares as overvalued. We ultimately remain cautious as there are still significant ways to go in converting legacy customers over to the cloud, which carries the risk of customers jumping the SAP ship altogether, even if SAP is retaining a solid base of customers on the way.

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SAP SE

SAP Earnings: Cloud ERP Strength From New and Old Customers; Raising FVE to EUR 150 From EUR 141

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