UBS Sees Cloud Growth Reacceleration To Lead To SAP's Re-Rating - SAP (NYSE:SAP)

UBS analyst Michael Briest upgraded SAP SE (NYSE: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 (NYSE: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.

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