Analyst Sachin Mittal of DBS maintained a Buy rating on SAP SE (0NW4 – Research Report), with a price target of €278.00.
Sachin Mittal has given his Buy rating due to a combination of factors that highlight SAP SE’s strong performance and future growth potential. The company’s revenue has shown a significant year-over-year increase, particularly driven by a substantial rise in cloud revenue. This shift from a legacy licensing model to a more predictable cloud subscription model is expected to provide stability and resilience in a challenging macroeconomic environment.
Moreover, SAP’s impressive cloud momentum, despite broader economic uncertainties, and its ability to cross-sell and upsell its extensive product portfolio to a large customer base, further support the positive outlook. The company’s strategic initiatives, including its restructuring program and partnership with Nvidia to enhance AI capabilities, are anticipated to drive future revenue growth. These factors, combined with a target price based on a forward EV/sales multiple higher than the historical average, underpin the Buy rating.
In another report released on April 24, Barclays also maintained a Buy rating on the stock with a €308.00 price target.
0NW4’s price has also changed moderately for the past six months – from EUR220.640 to EUR243.731, which is a 10.47% increase.