Analyst Derrick Wood from TD Cowen maintained a Buy rating on SAP AG (SAP – Research Report) and increased the price target to $315.00 from $310.00.
Derrick Wood has given his Buy rating due to a combination of factors that highlight SAP AG’s potential for growth and resilience. Despite a mixed performance in the recent quarter, SAP’s RISE initiative continues to gain traction, and the company’s growth outlook for 2025 has been raised from 7% to 9%. This indicates a positive long-term trajectory, even amidst macroeconomic challenges.
Furthermore, SAP has demonstrated its ability to navigate through economic turbulence effectively, as seen in prior periods of instability. The company’s strategic reinvestment in sales headcount and its positioning to benefit from potential shifts in EMEA purchasing preferences add to its growth prospects. While foreign exchange headwinds are anticipated, the focus remains on constant currency growth, and SAP’s medium-term growth acceleration and margin expansion are expected to drive share performance. Despite recent stock price declines, the valuation remains attractive, supporting the Buy recommendation.
According to TipRanks, Wood is a 5-star analyst with an average return of 12.2% and a 55.53% success rate. Wood covers the Technology sector, focusing on stocks such as Microsoft, ServiceNow, and Atlassian.