Frederic Boulan, an analyst from Bank of America Securities, maintained the Buy rating on SAP SE (0NW4 – Research Report). The associated price target remains the same with €307.00.
Frederic Boulan has given his Buy rating due to a combination of factors including SAP’s strong financial outlook and strategic positioning. The company’s recent meetings with CFO Dominik Asam highlighted that despite macroeconomic uncertainties, SAP’s business remains resilient and unaffected. The growth in their Current Cloud Backlog (CCB) at the year-end provides a clear visibility into their 2024 guidance, and the recent sell-off in stock price presents an attractive buying opportunity.
Furthermore, SAP’s focus on cloud growth and AI integration positions it as a top pick in the software sector. The company is in the early stages of cloud migration, with significant potential for revenue growth as more customers transition to the cloud. Additionally, SAP’s launch of Business Data Cloud aims to establish it as a leading AI agent provider, offering substantial business opportunities. With a strategic cost management approach and potential for margin expansion, SAP is well-positioned for long-term growth, supporting Boulan’s Buy rating.
In another report released on March 12, Warburg Research also upgraded the stock to a Buy with a €275.00 price target.
Based on the recent corporate insider activity of 50 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.
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