The SAP stock is still considered by many analysts as not at its limit, with significant growth potential, especially driven by the integration of Artificial Intelligence (AI) and process optimizations. Despite a recent price setback to around 255 to 258 euros, the stock is still well below its all-time high of approximately 283.50 euros from February 2025, indicating room for a rally.
Analyst Upgrades and Price Targets
Several major banks and research houses have recently raised or confirmed their price targets: Warburg Research sees potential up to 295 euros, Deutsche Bank maintains a target of 310 euros, and UBS has even increased its price target to around 307 euros – all of which are values above the previous record high. This corresponds to an upside potential of more than 20 percent compared to the current price level.
Growth Potential and Fundamental Strengths
- Independence from Economic Environment: SAP is less affected by cyclical fluctuations, thanks to stable software subscriptions.
- Strong Quarterly Results: In Q1/2025, SAP was able to increase revenue by over 12 percent and achieved a positive earnings per share (EPS) after losses in the previous year’s quarter.
- AI Innovations: Analysts see the AI solutions as a significant driver for future growth and efficiency increases in client companies.
- Long-term Uptrend: Despite short-term setbacks, the stock has been in a long-term uptrend since April, with a value increase of over +13% since then.
For investors in the German-speaking region, this is particularly interesting, as SAP plays a central role as a DAX heavyweight and remains attractive in volatile markets due to its innovative strength and solid fundamentals.
In summary, the rally in SAP stock could indeed be just beginning, as both fundamental growth factors and technical indicators suggest that not all potentials have been fully utilized yet. However, investors should pay attention to short-term volatility and closely monitor the upcoming quarterly figures.