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On Wednesday, KeyBanc Capital Markets maintained its optimistic stance on SAP SE (ETR:SAPG) (SAP:GR) (NYSE: SAP), reiterating an Overweight rating and a price target of EUR290.00. The endorsement follows SAP’s first-quarter results of 2025, which were perceived more favorably than anticipated despite challenges from currency fluctuations and economic uncertainty. This optimism aligns with broader analyst sentiment, as revealed by InvestingPro data showing two recent upward earnings revisions and a strong 35% return over the past year.
Jackson Ader, an analyst for KeyBanc, noted that the company’s Cloud ERP growth exceeded expectations when adjusted for currency impacts. This performance, coupled with a consistent outlook, positions SAP favorably in a sector that has recently been under pressure. The company’s robust 73% gross profit margin and 9.5% revenue growth, as reported by InvestingPro, underscore this strong positioning. Market concerns had centered around the potential negative effects of macroeconomic uncertainty on bookings and future guidance.
SAP’s recent financial disclosure revealed that the company managed to navigate through the volatility of the US dollar, which had some impact on its reported outcomes and updated projections. Despite these hurdles, the firm chose to maintain its full-year guidance on a constant currency basis.
Ader expressed relief and satisfaction with SAP’s position, emphasizing the company’s resilience amid the current economic climate. He suggested that the results not only surpassed initial concerns but also represented an ideal scenario for the company moving forward.
Investors and market watchers have been closely monitoring the technology sector for signs of how companies are dealing with the broader economic headwinds. SAP’s ability to beat cloud ERP growth forecasts and reaffirm its guidance is likely to be seen as a positive indicator of its stability and potential for growth amidst uncertainty. For deeper insights into SAP’s valuation and growth metrics, including exclusive analyst forecasts and 12 additional ProTips, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, SAP AG (NYSE:SAP) reported strong first-quarter results for 2025, surpassing analysts’ expectations with non-IFRS earnings per share of €1.44 and an operating profit of €2.46 billion. While total revenue was slightly below the consensus estimate at €9.01 billion, it still marked an 11% year-over-year increase. JMP maintained a Market Outperform rating with a $330 price target, highlighting SAP’s robust performance and growth in cloud services. Meanwhile, Citi adjusted its price target for SAP to EUR280 from EUR300, citing macroeconomic uncertainties but maintaining a Buy rating. TD Cowen raised its price target to $315, expressing optimism about SAP’s full-year outlook despite mixed signals from mid-market partners. BMO Capital Markets reduced its price target to $300, maintaining an Outperform rating and emphasizing SAP’s high revenue visibility from cloud conversions. Despite economic challenges, analysts show confidence in SAP’s strategic direction and resilience.
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