Analyst Michael Turrin of Wells Fargo maintained a Buy rating on SAP SE, retaining the price target of €345.00.
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Michael Turrin’s rating is based on several compelling factors that highlight SAP SE’s potential for growth and value creation. The recent acquisition of SmartRecruiters demonstrates SAP’s commitment to enhancing its product offerings in talent acquisition, which aligns with its strategic focus on leveraging AI and expanding its solutions across key business areas. This move is expected to strengthen SAP’s competitive position and drive further customer engagement.
Additionally, Turrin notes the significant opportunity in SAP’s cloud business, which is poised to exceed traditional maintenance conversion rates. The company’s advancements in AI tools, such as Joule for Developers, are anticipated to reduce implementation costs and enhance customer adoption. Furthermore, the strategic partnership with DataBricks through the Business Data Cloud initiative is seen as a promising collaboration that could unlock new revenue streams, despite its lower initial margins. These factors, coupled with SAP’s potential for margin expansion and its strong market positioning, underpin Turrin’s Buy rating.
In another report released on August 1, UBS also maintained a Buy rating on the stock with a €300.00 price target.