Andrew Sherman, an analyst from TD Cowen, maintained the Buy rating on SAP AG. The associated price target was lowered to $250.00.
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Andrew Sherman has given his Buy rating due to a combination of factors including solid underlying demand trends and an attractive valuation. While recent commercial partner surveys showed slightly softer results quarter over quarter, enterprise checks across key industries such as healthcare, manufacturing, retail, and high-tech remained resilient, and partner feedback pointed to robust large-deal pipelines and healthy cloud momentum.
At roughly 16x EV to expected 2026 free cash flow and after a share price pullback of about 25% since the last earnings release, Sherman views the risk-reward as favorable despite macro and pricing-related uncertainties. He acknowledges potential near-term disruption from SAP’s evolving consumption-based pricing and geopolitical risks in energy-related and Middle East markets, but believes expectations have reset lower and sees upside as cloud growth accelerates and customers expand investments in areas such as GenAI and SAP’s newer offerings.
According to TipRanks, Sherman is an analyst with an average return of -11.8% and a 29.00% success rate. Sherman covers the Technology sector, focusing on stocks such as JFrog, Dynatrace, and Datadog.
In another report released on April 13, BMO Capital also maintained a Buy rating on the stock with a $210.00 price target.