SAP SE is an enterprise cloud company and a provider of application and analytics software for enterprises in mobile enterprise management.
Due to compelling cost and innovation advantages in upgrading to the new generation of business suite S/4HANA, the firm expects a faster product cycle with 1,200 S/4 customers this year increasing to near 24,000 by 2020, Barclays noted.
"We believe the promotion program and S/4 HANA being the main vehicle to drive innovation in the future could result in cost savings for customers and should cause a faster upgrade cycle," Barclays analysts said.
Additionally, the promotion program could drive product revenues of euro 140 million in 2015 to over euro 5 billion in 2020,Barclays added.
Shares of SAP are declining 0.87% to $72.57 in morning trading Friday.
Separately, TheStreet Ratings team rates SAP SE as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SAP SE (SAP) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself."