SAP initiated with an Outperform at Bernstein

Bernstein initiated coverage of SAP with an Outperform rating and $227 price target. The firm believes the company can deliver both double-digit revenue growth plus improving margins driven by the enterprise resource planning market and SAP’s transition to the cloud. The company is positioned to drive sustained double-digit revenue growth through fiscal 2028 and possibly 2023 and meaningful margin improvement throughout that period, the analyst tells investors in a research note. Bernstein says there are few very large cloud transitions left and SAP could be the largest purely cloud transition driven story. SAP is a “unique investment opportunity within our joint coverage and one on which we believe investors should focus time and attention,” it writes.