Jefferies analyst Charles Brennan has maintained their bullish stance on 0NW4 stock, giving a Buy rating today.
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Charles Brennan has given his Buy rating due to a combination of factors that show SAP delivering resilience and upside versus expectations. He highlights that cloud momentum remains robust, with current cloud backlog and cloud revenue growth both outpacing consensus, while total revenue met forecasts despite minor softness in services and licenses.
At the same time, profitability exceeded market expectations, with non-IFRS EBIT and margins coming in notably stronger, even after adjusting for lower stock-based compensation. Although free cash flow was slightly under consensus, Brennan views this as largely driven by one-off items and working capital, leaving his confidence intact given stable full-year guidance and the likelihood that recent AI-related concerns have been overstated.
Brennan covers the Technology sector, focusing on stocks such as Computacenter, Temenos, and Sage Group plc. According to TipRanks, Brennan has an average return of 9.1% and a 59.31% success rate on recommended stocks.
In another report released today, Goldman Sachs also maintained a Buy rating on the stock with a €260.00 price target.