SAP: Stifel raises target price
(CercleFinance.com) - Stifel maintains its Buy rating on SAP shares, with a target price raised from E265 to E300.
The analyst highlights the share's strong revaluation, which has risen from 6.0-6.5x next-12-month sales in summer 2024 to around 8.5x at present, driven by growing confidence in customers' migration to RISE with SAP and the resulting sustained cloud momentum.
Going forward, we expect the stock's performance to be increasingly underpinned by EPS growth and positive earnings revisions, Stifel says.
Against this backdrop, the broker anticipates a continued acceleration in sales growth over the next three years, from 11% in 2024 to 14% in 2027, driven by around 25% growth in cloud revenues and a resilient maintenance sector.
In addition, SAP is expected to generate FCF of over E30bn over the next three years, providing sufficient room for share buybacks, dividends and targeted acquisitions, Stifel adds.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
The analyst highlights the share's strong revaluation, which has risen from 6.0-6.5x next-12-month sales in summer 2024 to around 8.5x at present, driven by growing confidence in customers' migration to RISE with SAP and the resulting sustained cloud momentum.
Going forward, we expect the stock's performance to be increasingly underpinned by EPS growth and positive earnings revisions, Stifel says.
Against this backdrop, the broker anticipates a continued acceleration in sales growth over the next three years, from 11% in 2024 to 14% in 2027, driven by around 25% growth in cloud revenues and a resilient maintenance sector.
In addition, SAP is expected to generate FCF of over E30bn over the next three years, providing sufficient room for share buybacks, dividends and targeted acquisitions, Stifel adds.
Copyright (c) 2025 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.