Stock Price & Analysis

Based on the latest market data and analyst reports, SAP stock shows positive momentum and strong growth potential. The stock is currently trading at $276.29 with a bullish RSI of 76.22, indicating strong momentum.

Technical Analysis

• The stock is trading above its 20-day moving average of $256.08, suggesting a strong uptrend
• Fibonacci levels show key resistance at $281.25 and support at $251.31
• The MACD indicator is positive at 7.17, confirming bullish momentum

Recent Developments & Analyst Views

• TD Cowen recently upgraded SAP to Buy with a $305 price target, citing resilient growth execution and positive outlook
• Barclays maintains a Buy rating with a new price target of $283, expressing optimism about Q4 earnings and 2025 outlook
• The company is benefiting from:
  • Sharp rise in Cloud ERP priority
  • AI becoming a catalyst for ERP migrations
  • Expected growth acceleration through 2027

Growth Catalysts

• Cloud growth expected to accelerate to nearly 29% at constant currency
• Operating margins projected to expand from 23% in 2024 to:
  • 27% in 2025
  • 29% in 2026
• Revenue growth expected to accelerate from 10% to 15% over next three years

Based on the strong technical indicators, positive analyst sentiment, and robust growth outlook, SAP stock appears to be a buy at current levels.

Based on the provided data and market analysis, here is the price prediction for SAP stock in 2025:

SAP stock is expected to reach $305 by end of 2025, driven by accelerating cloud revenue growth and expanding profit margins. The strong technical indicators with RSI at 76.22 showing momentum, combined with positive cloud business execution and AI integration initiatives support this target.

TD Cowen analysts project SAP's growth to accelerate from 10% in 2024 to 13.5% in 2025, with operating margins expanding from 23% to 27%, providing strong fundamentals for price appreciation.

The stock is currently trading around $276, and with continued strength in Cloud ERP demand and new AI monetization opportunities, it has clear upside potential to the $305 target.

The S1 support level for SAP Stock is $251.31 ,The R1 resistant level for SAP Stock is $274.19.

As of the end of day on 2025-01-24, the price of SAP Stock was $275.76.

The target price for SAP Stock according to analyst rating is 273.17, with the highest price target at 300.00 and the lowest at 259.00. Analysts have a Moderate Buy rating on SAP Stock overall.

The market cap of SAP is $322.5B.

Based on the provided data and current valuation metrics, SAP appears to be overvalued. The company's PE ratio has increased significantly to 91.05 in Q3 2024, well above historical levels and industry averages. The EV/EBITDA ratio of 27.44 also indicates premium valuation compared to peers. Price-to-sales ratio of 7.47 and price-to-book ratio of 5.82 are both at elevated levels, suggesting the stock is trading at rich multiples. The declining dividend yield trend from 1.24% to 1.05% over three quarters further supports this conclusion.

Recent analyst reports from Barclays indicate a price target of $283, implying only 2.77% upside from current levels. While analysts remain generally positive on SAP's cloud transformation and growth prospects, the current valuation appears to have priced in much of the expected benefits. UBS analysts have also flagged broader market bubble risks, particularly in high-value technology sectors.

The stock has gained over 60% in the past year, driven by its positioning as a stealth AI play and strong cloud business momentum. However, at current levels, the risk-reward ratio appears unfavorable given the stretched valuation metrics and limited upside potential based on analyst targets.

SAP SE (SAP) is a Germany-based company that offers enterprise application software. The Company operates through three segments: Applications, Technology & Services segment, which is engaged in the sale of software licenses, subscriptions to its cloud applications, and related services, primarily support services and various professional services, and support services, as well as implementation services of its software products and education services on the use of its products; the SAP Business Network segment, which includes its cloud-based collaborative business networks and services relating to the SAP Business Network, including cloud applications, professional services and education services, as well as the Company markets and sells the cloud offerings developed by SAP Ariba, SAP Fieldglass and Concur, and the Customer Experience segment, which comprises on-premise and cloud-based products that run front office functions across the customer experience.

Based on the comprehensive data analysis and market research, here is the price prediction for SAP stock by 2030:

SAP stock is projected to reach $450-500 by 2030, driven by its strong cloud business transformation and AI integration which is expected to accelerate revenue growth to 15% annually by 2026. The company's successful pivot to cloud services and strategic AI investments, including the integration of AI copilot Joule across 80% of business transactions by end of 2024, positions SAP as a dominant enterprise software player.

TD Cowen's analysis indicates SAP's operating margins will expand from 23% in 2024 to 29% in 2026, supporting a 26% compound annual growth rate in operating profit, which provides strong fundamental support for sustained price appreciation.

SAP has a total of 107602 employees.