SAP SE (SAP) inked a partnership deal with Amazon Business to help employees tap numerous items on Amazon Business directly from within SAP Ariba solutions and aid compliance with corporate purchasing policies.
Shares of the multinational software company have gained over 18% over the past six months. (See SAP AG stock charts on TipRanks)
The integration of Amazon Business with the guided buying capability of SAP Ariba solutions will ease the process of buying general business goods and will also offer users a countless number of new items.
Tony Harris, global VP of Business Network solutions at SAP commented, “Partnering with Amazon Business is a bold step aligned with our strategy to make SAP Business Network more open so that users can more easily and compliantly buy the goods required to do their work and keep their businesses running,”
He further added, “Customers want choices, and SAP is continually evaluating and onboarding new content sources for our Spot Buy capability to provide the most value to them.”
Spot Buy is a capability within SAP Ariba solutions that helps users purchase items from trusted suppliers. SAP said it will roll out the integration in the United States later this year and to its global customers thereafter.
Oppenheimer analyst Ray McDonough recently resumed coverage on SAP with a Buy rating and the price target of $155 (6.8% upside potential).
McDonough said that SAP pushing out its long-term targets have “de-risked near term margin concerns and the company laps easier cloud comparisons.” However, he added that he is concerned about the company’s ability to achieve its targets for 2025.
Consensus among analysts is a Strong Buy based on 4 unanimous Buys. The average SAP AG price target of $164.50 implies 13.3% upside potential to current levels.
TipRanks data shows that financial blogger opinions are 90% Bullish on SAP, compared to a sector average of 71%.
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