Introduction
Warburg Research forecasts strong quarterly results for SAP on July 22, 2025, based on growth through cloud ERP and innovative AI technologies. This has led to a raise in the price target to 295 euros, indicating significant potential for the stock.
Growth drivers: Cloud ERP and AI technologies
SAP’s growth is significantly driven by the strong demand for cloud solutions and the migration of customers to SAP’s cloud ERP suite. The company’s strategic vision is based on three pillars: AI-driven innovation, process optimization, and data excellence.
A central element of these innovations is Joule, a generative AI copilot, integrated into key SAP products such as S/4HANA Cloud and SAP Build. Joule is expected to take over up to 80 percent of common user operations by the end of 2025, allowing for productivity increases of up to 20 percent.
Current market situation and forecasts
The SAP stock is currently around 267.15 euros, just 4.7% below its 52-week high of 280.40 euros. The RSI of 88.9 signals temporarily overbought conditions, but the fundamentals support the positive sentiment.
If SAP impresses again with its Q2 numbers on July 22, the long-awaited all-time high could be within reach. Analysts continue to see potential for the stock, especially if the positive trends in the cloud sector continue.
Buy recommendation
Warburg Research recommends entering the SAP stock, as the company continues to appear promising due to its innovative technologies and strong growth in the cloud segment. The raised price target of 295 euros underscores the stock’s potential.
Conclusion
Overall, entering SAP stock before the Q2 numbers on July 22 appears attractive, as the company expects strong quarterly results and innovative technologies such as AI systems continue to offer growth potential. Nonetheless, investors should keep an eye on the market situation and the overall economic climate.