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On Monday, Jefferies updated its price target for enterprise application software giant SAP SE (ETR:) (SAP:GR) (NYSE: SAP). The company raised its price target from 200.00 euros to 205.00 euros and reiterated its “buy” rating on the stock.
The revisions follow a review of SAP's annual report that highlighted the company's growing cloud backlog. Current Cloud Backlog (CCB) is projected to maintain a growth rate of approximately 27%. Jefferies notes that while there are changes that may cause movement at the bottom of the profit and loss statement (P&L), they are not expected to have a material impact on SAP's overall investment policy.
Analysts at the company noted that although the definition of profit in SAP's financial reporting has changed, the investment community's understanding is likely to continue. According to Jefferies, investors' attention continues to be on the strong growth of SAP's cloud backlog.
SAP SE is known for comprehensive services and solutions that help companies manage their operations and serve their customers. The company's cloud services are a key part of its offerings that power the digital transformation of customers around the world.
By adjusting its price target, Jefferies is expressing confidence that SAP can maintain its momentum in the cloud space. The new target price of EUR 205.00 reflects the company's positive outlook on SAP's future performance in the market.
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