
SAP SE (SAP) Stock Forecast & Price Target
SAP SE (SAP) Analyst Ratings
Bulls say
SAP's robust growth trajectory is underscored by its increasing cloud revenue forecast, with 2025 projections ranging from €21.6 billion to €21.9 billion, reflecting a significant year-over-year increase of 26%-28% in constant currency. The company also maintains a strong outlook for non-IFRS operating profit, anticipating figures between €10.3 billion and €10.6 billion, up 26%-30%, alongside an increase in free cash flow to €8.0 billion–€8.2 billion. Furthermore, SAP's substantial customer base, with approximately 80% being small to medium-sized enterprises, along with the growth of companies fully or partially utilizing SAP S/4HANA, positions the firm favorably in the enterprise software market.
Bears say
The analysis of SAP's recent performance highlights a significant decline in growth metrics, notably the current cloud backlog growth rate which fell to 25%, the slowest rate in nine quarters, suggesting underlying challenges in sustaining momentum. The company also experienced mixed results in its latest quarterly earnings, reporting total revenue of €9.68 billion, marginally below consensus expectations, and cloud revenue growth that decreased to 27% from 28% in the previous quarter. Furthermore, downward adjustments in future earnings estimates and guidance point to anticipated difficulties, including potential pricing pressures and market share losses in its enterprise applications business, fostering a cautious outlook for the company's stock.
This aggregate rating is based on analysts' research of SAP SE and is not a guaranteed prediction by Public.com or investment advice.
SAP SE (SAP) Analyst Forecast & Price Prediction
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