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Investing.com - TD Cowen lowered its price target on SAP AG (NYSE:SAP) to $330.00 from $350.00 on Thursday, while maintaining a Buy rating on the German software giant. According to InvestingPro data, SAP currently trades at $276.17, with analyst targets ranging from $306 to $375, suggesting potential upside despite recent earnings revisions.
The adjustment follows SAP’s third-quarter results, which showed Cloud & Services growth of 12% at constant currency, slightly below the Street’s expectation of 13%.
Management guided fiscal year 2025 Cloud growth to the low end of its previous forecast range, a development TD Cowen analyst Derrick Wood indicated was in line with expectations.
Despite the mixed results and lowered guidance, TD Cowen expressed encouragement about SAP’s commentary regarding stabilizing macroeconomic conditions and a robust pipeline of large deals.
The firm also highlighted SAP’s fourth-quarter Current Cloud Backlog growth target of approximately 26%, supporting TD Cowen’s view of an "attractive mid-term growth acceleration framework" for the company.
In other recent news, SAP AG reported its third-quarter 2025 financial results, which showed a slight miss in earnings per share (EPS) and a significant shortfall in revenue compared to analyst expectations. The company’s EPS was reported at €1.72, just below the forecast of €1.73, while revenue reached €9.08 billion, falling short of the anticipated €10.61 billion. Despite these results, Citizens reiterated a Market Outperform rating for SAP, maintaining a $375.00 price target, as the company exceeded consensus estimates for non-IFRS EPS and operating profit. BMO Capital, however, lowered its price target for SAP to EUR320 from EUR330, citing solid third-quarter results but expressing disappointment in the fourth-quarter guidance.
KeyBanc raised its price target for SAP to EUR300 from EUR290, maintaining an Overweight rating and highlighting the importance of the upcoming fourth quarter. The firm noted SAP’s management commentary as positive, even as the company targets the lower end of its Cloud revenue range. Oppenheimer maintained a Perform rating on SAP, emphasizing the strong growth and profitability of its cloud business, which boasts mid-70% gross margins. These developments reflect a mixed but cautiously optimistic outlook from analysts regarding SAP’s financial performance and future prospects.
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