Argus upgrades SAP to Buy from Hold following Q2 earnings report

As previously reported, Argus upgraded SAP to Buy from Hold with a $240 price target following the company’s Q2 earnings report. The firm noted that SAP reported a 35% increase in pro forma operating income on 10% revenue growth in 2Q24, and pro forma EPS growth of 60%. Argus expects cloud services to “drive future revenue growth as its traditional license business diminishes” and noted that SAP is also “exploiting new opportunities in artificial intelligence.”