Eagle Capital Management, LLC on SAP SE
Thesis
SAP owns a mission-critical and highly sticky ERP franchise. Eagle expects the core business to grow rapidly as customers migrate to SAP's modern platform. Although peripheral products may face stronger competition, the firm believes the core franchise can support attractive earnings growth over the coming years.
“its core should grow rapidly over the next five years as it migrates customers to its modern platform.”
Key risks
- Peripheral software products are likely to face tougher competition.
- The growth thesis depends on successful customer migration to the modern platform.