SAP downgraded to Neutral from Overweight at Piper Sandler

Piper Sandler analyst Billy Fitzsimmons downgraded SAP (SAP) to Neutral from Overweight with a price target of EUR 170, down from EUR 220. The firm says 2026 “has been rough for enterprise software.” As the frontier model providers “move up the stack” and compete with incumbents for IT budgets, investors are reassessing terminal multiples, the analyst tells investors in a research note. Piper lowered multiples in the group ahead of Q1 earnings and downgraded three names. Select channel discussions suggest slower cloud conversions than expected for SAP in the near-term, the firm contends. Piper adds that SAP also has outsized exposure to a tougher European macro environment.