Analyst Sachin Mittal from DBS maintained a Buy rating on SAP SE (0NW4 – Research Report) and keeping the price target at €278.00.
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Sachin Mittal has given his Buy rating due to a combination of factors that highlight SAP SE’s strong performance and growth potential. The company has experienced a significant increase in revenue, particularly in its cloud segment, which grew by 27% year-over-year, contributing to a 12% overall revenue growth. This shift from legacy licensing to cloud-based solutions is expected to provide a more stable and predictable revenue stream, which is crucial in a challenging macroeconomic environment.
SAP’s impressive cloud momentum, with consistent growth above 25% year-over-year, indicates strong demand for its services despite economic uncertainties. Furthermore, the company’s strategic initiatives, such as its restructuring program and partnership with Nvidia, are poised to enhance its capabilities in artificial intelligence, supporting future growth. Mittal also notes the potential for cross-selling and upselling within SAP’s extensive customer base, which could further drive revenue. The target price of EUR 278 reflects these positive growth prospects and the company’s ability to maintain its competitive edge.
In another report released on May 16, Jefferies also maintained a Buy rating on the stock with a €300.00 price target.
Based on the recent corporate insider activity of 51 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of 0NW4 in relation to earlier this year.