Berenberg ups SNP Schneider as partner business comes to full swing

SNP Schneider-Neureither & Partner SE

02/02/2022 11:35

** Berenberg upgrades SNP Schneider  SHFG.DE  to "buy" from
"hold" saying the company's strategy to drive sales via its
partners will gain traction this year, leading to its EBIT more
than doubling versus 2021
    ** The brokerage says that while new partnerships are likely
to be added at a smaller scale, the focus will be on
monetisation of existing ones, boosting sales via partners to
EUR 27 mln in 2022 vs EUR 18 mln last year
    ** Berenberg says the migration of SAP  SAPG 's ERP software
users to SNP's S/4HANA, due to the latter's better performance
and SAP's phasing-out of support for older version in 2027, will
soon accelerate
    ** The brokerage expects SNP to report a solid order book of
about EUR 145 mln, up 31% from last year, enabling the company
to have a good visibility on project-related work on the next
2-3 quarters
    ** "Optimising workforce utilisation, a key driver of solid
margins, should thus become easier than in the past few years,"
it says, adding that high-margin software sales should also
benefit from the existing order backlog
    ** Out of 4 analysts that cover SNP, three rate the stock
"strong buy" or "buy" and ​one analyst rates it "hold" 

 (Reporting by Tristan Chabba)
 ((Tristan.chabba@thomsonreuters.com))