SAP: New organisational changes to accelerate innovation “like never before”
BUY, Fair Value EUR73 (+24%)
Last Friday SAP announced a number of leadership changes, including the departure of the former SuccessFactors’ CEO Lars Dalgaard after 15 months as head of the Cloud division, in order to boost its strategy on HANA and the Cloud. With this new organisation, SAP is not resting on its laurels, and HANA, Cloud and Mobile should no longer be seen as internal start-up activities within SAP but as mainstream within SAP products. While the shares fell 3% on the back of this announcement, we consider this a positive signal for a rebound: 1). 2013 should see a pickup in margins after a pause in 2012; 2). EV/EBIT multiples have become 10% more attractive than a couple of weeks ago.
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