SAP price target raised to $147 from $140 at BMO Capital

BMO Capital analyst Keith Bachman raised the firm’s price target on SAP (SAP) to $147 from $140 and keeps a Market Perform rating on the shares. The company reported a solid quarter with consistent growth in cloud backlog, better-than-expected performance in license/maintenance, and an impressive operating margin and free cash flow performance, even though its cloud growth was a touch disappointing, the analyst tells investors in a research note. BMO adds however that the risk-return on SAP looks balanced from stock value perspective, preferring Adobe (ADBE) and Microsoft (MSFT) in GARP software space.