How the SAP Story Is Shifting as Analysts Weigh Cloud Growth and Revenue Headwinds

SAP's fair value price target has edged slightly higher this quarter, rising from €288.14 to €288.67. This modest increase comes as analysts weigh the company’s long-term growth prospects while also taking into account a tempering of revenue forecasts. Stay tuned to see how you can follow the evolving analyst sentiment and keep up with shifts in SAP's strategic outlook moving forward.

Analyst Price Targets don't always capture the full story. Head over to our Company Report to find new ways to value SAP.

What Wall Street Has Been Saying

🐂 Bullish Takeaways

Several analysts remain constructive on SAP’s long-term outlook, highlighting the company’s consistent execution and growth avenues, especially within its cloud business. JPMorgan, represented by analyst Toby Ogg, raised its price target to EUR 310 from EUR 290 and maintained an Overweight rating. This move signals confidence in SAP’s strategic direction and growth potential. Barclays increased its price target to $348 from $322 and kept an Overweight stance. The bank pointed to a more upbeat macro outlook and a strengthening Q4 pipeline as signs SAP can accelerate revenue growth in the coming year, despite some near-term softness in guidance. Oddo BHF upgraded SAP to Outperform from Neutral, viewing recent share price weakness as a buying opportunity. The firm emphasized SAP’s earnings resilience even in a weaker economic backdrop. Jefferies reiterated a Buy rating with a EUR 290 price target and stressed SAP’s “multiple levers of growth” along with confidence in a stock rebound following recent declines.

🐻 Bearish Takeaways

BMO Capital trimmed its price target to $320 from $330, citing a disappointing Q4 outlook but acknowledged SAP’s long-term positioning and potential in cloud conversion. Erste Group downgraded SAP to Hold from Buy due to concerns over valuation. The firm noted that the stock is “highly valued” and further upside may be limited in the near term.

Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there's more to the story. Head to the Simply Wall St Community to discover more perspectives or begin writing your own Narrative!XTRA:SAP Community Fair Values as at Nov 2025

What's in the News

BlackLine shareholders are increasing pressure on the company to consider a sale, following news of recent takeover interest from SAP. Major investors have reportedly contacted BlackLine’s board directly to encourage deal discussions. SAP is considering renewing its bid for BlackLine after a previous offer valued near $4.5 billion was turned down earlier this year. Talks about a potential acquisition are ongoing in response to increased shareholder activism. SAP is preparing to offer remedies to the European Commission to address an ongoing EU antitrust investigation. The goal is to resolve regulatory concerns and avoid a substantial fine. The Commission is expected to consult industry participants for feedback soon. Nvidia and Deutsche Telekom have announced a €1 billion data center project in Germany, with SAP expected to be a major anchor customer at the new facility.

Story Continues

How This Changes the Fair Value For SAP

The Fair Value Price Target has risen slightly from €288.14 to €288.67. The Discount Rate edged up from 6.33% to 6.36%. Revenue Growth forecasts have eased from 13.01% to 12.68%. The Net Profit Margin is notably higher, increasing from 19.72% to 21.38%. The future P/E ratio has declined from 38.62x to 36.03x.

🔔 Never Miss an Update: Follow The Narrative

Think of a Narrative as the story behind a company’s numbers. It offers a clear, approachable way to connect business developments and forecasts with a fair value estimate. Narratives on Simply Wall St help you cut through the noise by linking what’s happening at SAP to future revenue and profit, allowing you to decide when to buy or sell. Accessible through our Community page, Narratives are updated automatically as news breaks or earnings are released, keeping you informed with the latest market moves.

Read the original SAP Narrative to stay ahead on:

How SAP’s push into cloud technology and rapid AI adoption are fueling higher recurring revenue and long-term profit growth. The opportunities and challenges from new global partnerships, digitalization trends, and regulatory changes that influence SAP’s future outlook. The market expectations and price targets based on SAP’s projected earnings, profitability, and evolving business risks.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include SAP.DE.

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