SAP initiated with an Overweight at KeyBanc

KeyBanc initiated coverage of SAP with an Overweight rating and EUR 230 price target. SAP was “late to the cloud game for understandable reasons,” but since the RISE and GROW initiatives it has been able to drive 44% of its revenue to the cloud, the analyst tells investors. SAP is now reaching the point in the transition where the subscriptions begin to stack on themselves, leading to accelerating cloud and overall revenue growth, adds the firm, which expects cloud revenue to grow nearly 25% in each of the next two years.