The SAP stock is still considered not at its limit by many analysts, with significant growth potential, particularly driven by the integration of Artificial Intelligence (AI) and process optimizations. Despite a recent price setback to about 255 to 258 euros, the stock is well below the all-time high of around 283.50 euros from February 2025, leaving room for a rally.
Analyst Upgrades and Price Targets
Several major banks and research firms have recently raised or confirmed their price targets: Warburg Research sees a potential up to 295 euros, Deutsche Bank holds a target of 310 euros, and UBS has increased its target to around 307 euros – all 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 Cycles: SAP benefits less from cyclical fluctuations thanks to stable software subscriptions.
- Strong Quarterly Figures: 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 AI solutions as a key driver for future growth and efficiency gains in client companies.
- Long-term Uptrend: Despite short-term setbacks, the stock has been in a long-term uptrend since April, with an 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 may indeed just be beginning, as both fundamental growth factors and technical indicators suggest that not all potentials have been exploited yet. However, investors should keep an eye on short-term volatility and closely monitor upcoming quarterly figures.