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SAP: BMO analysts cut price target on softer Q4 outlook

AuthorAyushman Ojha
Published 23/10/2025, 06:10
© Reuters.
SAPG
-3.57%

Investing.com-- Analysts at BMO Capital Markets lowered their price target on SAP SE (ETR:SAPG), citing softer-than-expected guidance for the December quarter despite solid third-quarter results.

BMO lowered the target to $320 from $330, while maintaining an “Outperform” rating.

BMO analysts said SAP’s current cloud backlog (CCB) grew 27% year-on-year in constant currency for the September quarter, slightly above their 26% forecast but below the 28% pace seen in the June quarter.

The brokerage noted that SAP’s guidance for fiscal 2026 cloud revenue growth at the lower end of its target range implies weaker fourth-quarter performance.

“We are modestly lowering our CY26 estimates, given the results of the quarter and guide,” analysts wrote in a note to clients.

SAP reported quarterly revenue of about €9.08 billion, up 11% year-on-year in constant currency, with cloud revenue rising 27% to €5.29 billion.

BMO highlighted improving pipeline momentum, particularly in manufacturing and the public sector, but cautioned that fourth-quarter bookings could vary widely depending on large deal closures.

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