Jefferies analyst Charles Brennan says that while SAP (SAP) is trading 15% above prior trough valuations, for a company growing recurring revenue near 15%, a “trough in sight.” Software sentiment “has rarely been lower, with AI casting a shadow of uncertainty for the sector,” the analyst tells investors in a research note. Jefferies believes SAP is a “higher-quality business now than at any time in the past.” The company’s higher recurring revenue brings greater levels of visibility which should support more favorable multiples, the firm adds. Jefferies as a Buy rating on SAP with an EUR 290 price target
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