SAP upgraded to Hold from Underperform at Jefferies

Jefferies analyst Charles Brennan upgraded SAP (SAP) to Hold from Underperform with a price target of EUR 115, up from EUR 105. The analyst notes that with the company having issued a disappointing update on its FY25 outlook, the catalysts behind the firm’s prior bearish view have now played out. Jefferies adds that SAP shares are now trading at a discount of 12% on price to earnings basis and 18% on free cash flow yield basis relative to its closest peer Microsoft (MSFT).