Analysts predict growth potential of 20% News ad

SAP today

SAP SE logo
$268.15 +5.33 (+2.03%)

As of 1:49 p.m. ET

52 week range
$161.07

$268.79

Dividend yield
0.65%

P/E ratio
107.26

Target price
$263.17

Shares SAP SE New York Stock Exchange: SAPGerman software gianthave had incredible run over the past couple of years. Rally it started has shown no signs of slowing down at the end of 2022, with shares up 230% since then, including a 75% gain in the past year alone. This momentum has lifted SAP to new all-time highs repeatedly throughout 2024, and there are plenty of reasons to think the story isn’t over yet.

Headquartered in Germany, SAP specializes in enterprise resource planning (ERP) software and boasts a 53-year history that has seen its market capitalization exceed $300 billion. There are only three weeks left until the new year, and 2025 is already taking shape. up This will be another banner year for the company. Let’s jump in and take a look.

SAP Fundamentals

Starting with the Basicsit should be said that SAP’s results in 2024 were mixed. Surprisingly, given the stock’s stellar performance, its quarterly profit these were not the constant emissions that one would expect. For example, SAP missed revenue expectations in October, and its April report missed revenue expectations. both revenue and profit. However, these misses did not deter investors.

Heading in SAP’s first 2025 report next weekexpectations are high. Investors will be keeping a close eye on another record earnings and, ideally, beating both major indicators. The company can say its revenue growth hit a record high for the year, and management’s bullish stance, backed by multiple guidance upgrades, suggests the rally is set to continue. gaining momentum from this.

Is SAP still worth buying? Analysts see growth potential in early 2025

SAP stock forecast today

Stock price forecast for 12 months:
$263.17
Buy
Based on ratings of 10 analysts
High forecast $305.00
Average forecast $263.17
Low forecast $207.00

SAP Stock Forecast Details

On the analyst side, there have been surprisingly few updates on SAP for a stock that has delivered such consistent gains while still being overwhelmingly bullish. The last notable update came in October 2024, when the company’s reports were followed by a flurry of “outperform” and “outperform” confirmations. It’s been quiet since then – until last week.

SAP just received two fresh updatesWith teams over Kepler Capital Markets and TD Cowen upgraded their ratings from Hold to Buy. Recent survey results were allocatedas they suggested increased demand for cloud-based ERP solutions as advances in artificial intelligence accelerate enterprise migration.

TD Cowens new target price The $305 price tag is worth considering; compared to last night’s close, that’s a target upside of about 20%.

All-time highs: Should investors be wary of SAP stock?

However, it can be scary to buy into stocks that are trading at all-time highs. Despite its stellar results, the company struggled to consistently beat analysts’ expectations in its earnings report, a factor that typically puts significant pressure on stocks that have such strong growth behind them.

In another company, such a discrepancy could provoke a rollback. However, SAP’s bullish momentum and investor confidence have so far helped the company avoid these pitfalls. However, with shares trading at highs, new investors face the risk of a potential drop in earnings next week. At the same time, however, growing demand for ERP solutions and recent upgrades suggest that SAP is well positioned for further growth, and any pullback could be seen as a good entry opportunity.

SAP technical customization offers more work options

From a technical point of view, installing SAP provides more another reason for optimism. The stock’s Relative Strength Index (RSI) is currently at 66, which is a bullish signal, suggesting there is strong momentum and plenty of room for it to rise before it reaches overbought levels.

Overall, SAP is in a good position heading into 2025. Wall Street was able to look past the volatility of the past year and instead focus on management’s bullish outlook, a trend that will be difficult to reverse. The stock also continues to receive bullish ratings and updates from analysts, given the fact that last week saw two teams are removing their retention ratings, which is especially important.

Investors should search SAP shares will continue to rise after the report next weekWith bit will likely contribute to further successes and failures potentially installation create an attractive entry point for those excited to take advantage of the company’s long-term potential.

You should hear this before you consider SAP.

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