While maintaining its 'neutral' opinion on SAP, Oddo BHF is raising its target price from €160 to €188, in anticipation of a quarterly publication (April 22) which it expects to be 'solid on the topline', but 'more mixed on margins and FCF'.

The research firm is raising its growth forecasts by 1.8 points for 2025 and 2026 for the German software company, to take better account of the impact of migration to the cloud, i.e. an increase of 3% and 5% in its EPS estimates.

The rerating of the stock can ultimately be justified, and SAP's valuation is not really stretched, but the risk/reward is not attractive at current levels", the analyst considers, however, that sell-side consensus expectations seem "toppish".

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