Major European technology company SAP is aiming to achieve a market capitalisation of $273.45 billion, alongside a colossal share price increase of 300 per cent in the next few years.
These details were included in an internal email written by SAP CEO Bill McDermott, seen by Reuters.
Such a massive growth forecast is brought into perspective by the fact that SAP is currently the most valuable German blue chip company featuring on the blue chips index. The current market value of the company is close to 115 billion euros.
A dispute regarding management pay appears to have brought the memo containing these growth expectations to light, as Institutional Shareholder Services (ISS) applied pressure.
The group stood in opposition to the supervisory board’s stance in choosing not to improve its remuneration system. The ISS had recognized that shareholders were at odds with the existing system.
As reported by Reuters, Bill McDermott said: “I don’t expect everyone will agree on an emotional topic like stock-based compensation…. If we deliver on these goals, SAP will have a market capitalization of more than 250 billion euros.”
SAP experienced a recent knock in its financial results following the transition to a cloud business model, however Q1 results showed a 12% rise in revenue. Cloud bookings however rose, along with cloud subscription and support revenue.
Customers for SAP’s S/4 HANA also brought in a boost of 400 customers in the same quarter, raising SAP’s total customers to a hefty cohort of 5,800. This is a factor that is likely to have a positive effect on the company’s share price.