SAP price target raised to EUR300 from EUR290 at KeyBanc

Investing.com - KeyBanc raised its price target on SAP stock (SAP:GR) (NYSE:SAP) to EUR300.00 from EUR290.00 on Thursday, while maintaining an Overweight rating on the German software giant. Currently trading at $275.53, SAP has shown strong momentum with a 17% return over the past year, while analysts’ targets range from $306 to $375.

The firm’s adjustment comes as SAP approaches what KeyBanc describes as an "important fourth quarter," with the company targeting the lower end of its Cloud revenue range. Despite this conservative outlook, KeyBanc noted that management commentary was "positive and earnest." As a prominent player in the software industry, SAP has demonstrated solid performance with 10.3% revenue growth over the last twelve months. InvestingPro analysis shows the company maintains good financial health with strong profitability metrics.

KeyBanc highlighted CEO Christian Klein’s repeated references to pipeline coverage as an indicator of confidence. Klein reportedly stated he feels better about the year now than three months ago, suggesting improved visibility into future performance.

The analyst firm acknowledged potential near-term volatility in the stock but maintained its bullish stance, citing the company’s cloud pipeline strength. The price target increase reflects KeyBanc rolling its discounted cash flow model forward by one year.

SAP’s ability to execute on its existing pipeline will be crucial for meeting its financial targets, according to KeyBanc’s analysis of the company’s current position.

In other recent news, SAP AG reported its third-quarter 2025 financial results, which presented a mixed picture for investors. The company announced non-IFRS earnings per share of €1.59, surpassing the consensus estimate of €1.49, while its operating profit reached €2.57 billion, slightly above the consensus of €2.53 billion. However, revenue was reported at €9.08 billion, which matched one set of expectations but fell short of another forecast of €10.61 billion. Despite these mixed results, SAP’s cloud business showed strong growth, with impressive mid-70% gross margins, as highlighted by Oppenheimer analyst Ray McDonough. This indicates a successful transition to cloud services, contributing to the company’s profitability. Analysts from Oppenheimer maintained a Perform rating for SAP, while Citizens reiterated a Market Outperform rating with a price target of $375.00. These developments reflect the varied perspectives on SAP’s performance and future potential.

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