UBS analyst Michael Briest downgraded SAP to Neutral from Buy while raising his price target for the shares to EUR 105 from EUR 98. The analyst says that while he expects in-line Q1 results, he does not expecting an inflection in S/4 adoption this year and sees Qualtrics as "unlikely to transform" SAP's near-term prospects. Further, while the company's cloud margins have been on a steadily improving trajectory, the 2020 target of a 71% gross margin "still seems unattainable," Briest tells investors in a research note. With the shares now at a near 20 times price-to-earnings multiple on 2020 estimates, the analyst sees SAP as near fair value.