Analyst Derrick Wood from TD Cowen maintained a Buy rating on SAP AG and keeping the price target at $350.00.
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Derrick Wood has given his Buy rating due to a combination of factors that suggest a positive medium-term outlook for SAP AG despite some near-term challenges. The analyst acknowledges that macroeconomic conditions have led to longer sales cycles and a back-end loaded year, which may affect short-term growth. However, he remains optimistic about the medium-term potential, particularly with the momentum in cloud migrations and the anticipated adoption of AI technologies.
Wood’s analysis also highlights that while there are pressures from tariff disruptions and weaker bookings in certain sectors, the forward pipeline remains robust. The company is expected to benefit from cloud migration trends and the integration of AI, which could drive growth in the coming years. Although the stock has experienced a decline since its peak in July, its current valuation presents an attractive opportunity for investors, supporting the Buy recommendation.
In another report released today, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $302.00 price target.