In a report released yesterday, Hannes Leitner from Jefferies maintained a Buy rating on SAP SE (0NW4 – Research Report), with a price target of €300.00.
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Hannes Leitner has given his Buy rating due to a combination of factors that highlight SAP SE’s strategic advancements and potential for sustained growth. The recent Sapphire conference underscored SAP’s progress in artificial intelligence, which is expected to create long-term value for both customers and the company itself. This progress is anticipated to drive growth rates that exceed current market expectations, despite short-term challenges related to free cash flow projections.
Furthermore, SAP’s efforts to integrate AI across various applications, including non-SAP platforms, and its partnership with Databricks to enhance data management capabilities, are seen as significant steps forward. The expansion of AI use cases and the development of AI agents capable of optimizing end-to-end processes demonstrate SAP’s commitment to innovation. Positive feedback from industry partners like IBM, Capgemini, and Deloitte further reinforces the potential benefits of SAP’s AI initiatives, despite some concerns about transitioning customers to newer systems. Overall, these factors contribute to a favorable outlook for SAP’s stock.
In another report released yesterday, DBS also maintained a Buy rating on the stock with a €325.00 price target.