Benzinga | Dec 13, 2021 06:23AM EST

UBS Sees Cloud Growth Reacceleration To Lead To SAP's Re-Rating

* UBS analyst Michael Briest upgraded SAP SE (NYSE:SAP) to Buy from Neutral with a price target of EUR 147, up from EUR 130, implying an 8.6% upside.

* The analyst believes a reacceleration of cloud growth will drive a re-rating of the shares in 2022.

* Briest is more confident in the benefit to revenues from backlog added during 2021 and says a value case can also be made for SAP.

* 'As the stock has underperformed since the start of the year, we see cloud acceleration in 2022 to 24% and some traction with RISE pushing SAP stock up next year,' the broker said.

* Founded in 1972 by former International Business Machines Corp (NYSE:IBM) employees, SAP provides database technology and enterprise resource planning software to enterprises worldwide.

* Price Action: SAP shares traded higher by 2.67% at $139.00 in the premarket session on the last check Monday.