UBS Sees Cloud Growth Reacceleration To Lead To SAP's Re-Rating

UBS analyst Michael Briest upgraded SAP SE SAP to Buy from Neutral with a price target of EUR 147, up from EUR 130, implying an 8.6% upside.
The analyst believes a reacceleration of cloud growth will drive a re-rating of the shares in 2022.
Briest is more confident in the benefit to revenues from backlog added during 2021 and says a value case can also be made for SAP.
'As the stock has underperformed since the start of the year, we see cloud acceleration in 2022 to 24% and some traction with RISE pushing SAP stock up next year,' the broker said.
Founded in 1972 by former International Business Machines Corp IBM employees, SAP provides database technology and enterprise resource planning software to enterprises worldwide.
Price Action: SAP shares traded higher by 2.67% at $139.00 in the premarket session on the last check Monday.