Analyst Frederic Boulan from Bank of America Securities reiterated a Buy rating on SAP SE (0NW4 – Research Report) and keeping the price target at €320.00.
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Frederic Boulan has given his Buy rating due to a combination of factors that highlight SAP SE’s strong growth potential and financial health. One of the primary reasons is the high revenue visibility, with 95% of SAP’s revenues being recurring, and a significant cloud backlog that ensures mid-term growth. Additionally, the impact of generative AI is notable, as it has led to efficiency gains and increased traction with a growing customer base for SAP’s Business AI solutions.
Furthermore, the outlook for 2026-2027 is promising, with expectations of substantial cloud revenue growth and improved margins driven by structural operating leverage. SAP’s unlevered balance sheet supports significant cash returns, including potential share buybacks. The valuation of SAP reflects its superior growth prospects, trading at a premium compared to historical averages but still attractive relative to its peers like Salesforce and Microsoft, given its faster growth trajectory.
In another report released today, Baader Bank also maintained a Buy rating on the stock with a €270.00 price target.