Stock Price & Analysis

Based on the recent data and analysis, SAP stock shows strong bullish momentum and positive market sentiment. TD Cowen has upgraded SAP to Buy with a price target of $305, citing accelerated Cloud growth and AI integration benefits. The company is experiencing improved mid-market performance and favorable foreign exchange conditions that are expected to enhance its growth prospects through 2027.

Technical Analysis The stock is currently trading at $262.83 with an RSI of 66.84, indicating moderate bullish momentum without being overbought. The stock is trading above its 20-day moving average of $250.73, suggesting a strong upward trend.

Fundamental Catalysts

• Cloud ERP growth acceleration with AI acting as a catalyst for migrations
• Strong partner survey results showing improved performance outlook for 2025 (+7% vs. +2% last year)
• Favorable foreign exchange environment supporting growth
• Successful monetization of GenAI features with 30% price uplift in Premium SKU

Growth Outlook Analysts project accelerating growth from approximately 10% in 2024 to:

• 11.5% in 2025
• 13.5% in 2026
• 15% in 2027 Along with operating margins expanding from 23% in 2024 to 27% in 2025 and 29% in 2026.

Based on the strong technical setup, positive fundamental catalysts, and accelerating growth trajectory, SAP stock appears to be a strong buy at current levels. The stock has room for further upside toward the new analyst price target of $305.

Based on recent analyst reports and technical analysis, SAP's stock price is projected to reach $305 by the end of 2025, driven by strong Cloud ERP growth and successful AI integration through its co-pilot Joule [2,3]. TD Cowen analysts expect SAP's cloud revenue growth to accelerate to nearly 29% with expanding operating margins from 23% in 2024 to 27% in 2025. The combination of accelerating growth and margin expansion makes SAP a compelling investment case for 2025.

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 recent market trends, SAP appears to be trading at relatively high valuation multiples:

Valuation Metrics

• P/E ratio of 91.05 (Q3 2024)
• EV/EBITDA of 27.44
• P/S ratio of 7.47
• P/B ratio of 5.82

Growth & Profitability

• Revenue growth accelerating: Q3 2024 revenue reached $9.31B, up from $8.73B in Q1
• Improving margins: Gross margin expanded to 73.64% in Q3 from 71.81% in Q1
• Net margin significantly improved to 17.01% in Q3 from -10.25% in Q1

Recent Analyst Views Multiple analysts have raised price targets recently:

• Barclays: $275 (Buy) citing strong Q3 and conservative guidance
• JMP Securities: $300 (Buy) highlighting growth potential in cloud business
• BMO Capital: $265 (Buy) noting strong free cash flow performance

Key Growth Drivers

• Strong cloud business momentum
• Successful transition to subscription model
• AI integration across product suite
• Expanding mid-market presence

Conclusion SAP appears overvalued at current levels based on traditional metrics. While the company shows strong operational execution and growth potential, the high valuation multiples, combined with recent stock appreciation of over 65% YTD, suggest limited upside potential in the near term. The restructuring costs and declining legacy software revenues also present near-term headwinds.

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 provided data and analysis, here's a projection for SAP's stock price in 2030:

SAP's stock price is expected to reach approximately $450-500 by 2030, driven by strong cloud business growth and AI integration. The company's successful transition to cloud services and strategic AI implementations, particularly through its co-pilot Joule, positions it well for sustained growth. The acceleration in Cloud ERP revenue growth to 36% year-on-year and improving market performance in recent quarters supports this bullish outlook.

This projection is supported by SAP's current strong market position and several key growth drivers:

• Continued cloud revenue acceleration with expectations to reach five-year highs
• Strategic AI integration across product suite driving enhanced value proposition
• Strong position in Cloud ERP market with growing priority for enterprise cloud solutions

SAP has a total of 107602 employees.