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Investing.com - Berenberg has lowered its price target on SAP (SAP:GR) (NYSE:SAP) to EUR280.00 from EUR289.00 while maintaining a Buy rating on the stock, citing foreign exchange impacts from a weakening US dollar. The software giant, currently trading at $278.53, maintains strong financial health with an "GOOD" rating according to InvestingPro metrics.
The adjustment follows SAP’s third-quarter 2025 results released on October 22, which Berenberg characterized as a "solid performance" with robust current cloud backlog (CCB) growth that exceeded consensus expectations. The company’s strong performance is reflected in its impressive 73.8% gross profit margin and consistent dividend payments maintained for 34 consecutive years.
The research firm expects SAP’s growth momentum to continue into the fourth quarter and into next year, noting that the company continued to outperform on profitability metrics during the third quarter.
Despite solid quarterly results, Berenberg acknowledged that the performance may not fully address broader industry concerns about artificial intelligence disruption risks in the software sector.
Berenberg maintains its view that AI represents a "transformative, rather than disruptive" technological shift for SAP with long-term incremental opportunities, though meaningful benefits may not materialize until 2027.
In other recent news, SAP’s third-quarter results have drawn varied reactions from analysts. The company’s Cloud & Services segment reported a 12% growth at constant currency, slightly below the 13% expected by analysts. Barclays responded by raising its price target for SAP to €348, citing optimism about the macroeconomic environment and improvements in the U.S. public sector. Meanwhile, TD Cowen lowered its price target to $330, maintaining a Buy rating despite the mixed results. BMO Capital also adjusted its target to EUR320, noting solid third-quarter results but expressing some disappointment in the fourth-quarter guidance. KeyBanc raised its target to EUR300, highlighting an "important fourth quarter" and a positive management outlook. Oppenheimer maintained a Perform rating, emphasizing the strong growth and high margins of SAP’s cloud business, which supports the company’s profitability. These developments indicate a range of perspectives on SAP’s financial performance and future prospects.
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