SAP SE (0NW4) has received a new Buy rating, initiated by Piper Sandler analyst, Brent Bracelin.
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Brent Bracelin has given his Buy rating due to a combination of factors that highlight SAP SE’s strong growth potential in the cloud sector. SAP has become a leader in the rapidly expanding cloud ERP market, with a significant portion of its revenue now coming from this segment. The company is expected to maintain double-digit revenue growth and improve margins, which could lead to a substantial increase in free cash flow annually through 2030.
Additionally, SAP’s strategic initiatives, such as converting its existing ERP customer base to the cloud, expanding its product offerings, and targeting new market segments, are seen as key drivers of future growth. The company’s focus on data and AI through partnerships and new tools also presents opportunities for revenue enhancement. Despite past underperformance, SAP’s recent success in cloud transformation suggests a promising outlook, supporting Bracelin’s positive assessment.
According to TipRanks, Bracelin is a 2-star analyst with an average return of 0.0% and a 46.39% success rate. Bracelin covers the Technology sector, focusing on stocks such as nCino, Adobe, and Microsoft.
In another report released on June 13, Warburg Research also maintained a Buy rating on the stock with a €295.00 price target.