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Investing.com - BMO Capital lowered its price target on SAP (SAP:GR) (NYSE:SAP) to EUR320.00 from EUR330.00 on Thursday, while maintaining an Outperform rating on the stock. According to InvestingPro data, SAP, with a market capitalization of $319.73B, is currently trading above its Fair Value, though analysts maintain a bullish consensus with a mean rating of 1.53 (Strong Buy).
The price target adjustment follows SAP’s third-quarter results, which BMO Capital described as "solid," though it noted the fourth-quarter guidance was "a bit disappointing."
SAP reported Current Cloud Backlog (CCB) growth of 27% year-over-year in constant currency for the September quarter, with management guiding for approximately 26% year-over-year CCB growth in constant currency for the December quarter.
BMO Capital pointed out that management’s guidance that fiscal year 2026 cloud revenues would be at the lower end of the range implies weaker fourth-quarter growth.
The firm modestly lowered its calendar year 2026 estimates for SAP based on the quarterly results and guidance, resulting in the price target reduction while maintaining its positive outlook on the stock.
In other recent news, SAP reported its third-quarter 2025 financial results with mixed outcomes. The company achieved non-IFRS earnings per share of €1.59, surpassing the consensus estimate of €1.49, while operating profit reached €2.57 billion, slightly above the expected €2.53 billion. Total revenue stood at €9.08 billion, in line with consensus expectations and reflecting an 11% year-over-year growth in constant currency. However, revenue fell short of the anticipated €10.61 billion, and earnings per share of €1.72 narrowly missed the forecast of €1.73.
KeyBanc raised its price target for SAP to EUR300 from EUR290, maintaining an Overweight rating, citing positive management commentary despite a conservative outlook for the company’s cloud revenue. Oppenheimer reiterated a Perform rating, highlighting strong growth and profitability in SAP’s cloud business. Meanwhile, Citizens maintained a Market Outperform rating with a $375.00 price target, focusing on the company’s successful cloud transition. These developments reflect ongoing confidence in SAP’s strategic direction and financial performance.
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