08:00 AM EDT, 04/23/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We up our 12-month target to US$198 from US$193 on a P/E of 31x our '25 EPS view, above historical given growth prospects. We adjust our '24 EPS to EUR4.35 from EUR6.37 and '25 to EUR6.00 from EUR7.11 (partly reflects inclusion of stock comp expense). SAP posts Q1 EPS of EUR0.81 vs. EUR0.75, missing the EUR0.89 consensus. Sales rose 8%, near expectations, on cloud growth (+24%) partly offset by a 5% decline in software licenses and support. We are encouraged by cloud backlog +27% and cloud ERP suite +31% that supports SAP's aggressive growth ambitions through '25 (we see mid-20s cloud growth). SAP kept its '24 revenue outlook unchanged. We like greater focus on Business AI initiative and partnerships that will support higher revenue. We see monetization of AI being supported by shift to premium services, greater cross-selling opportunities, and new customer wins. Profitability/margin expansion will be aided by SAP's transformation strategy (hold headcount flat while it shifts more emphasis on investments).