SAP Stock: Berenberg Raises Target Despite Market Fluctuations

SAP shares experienced mixed trading on Tuesday, initially showing slight losses before recovering to a 2.5% gain, reaching €271.90 on the XETRA exchange. The stock briefly touched €274.60 during the day, demonstrating volatility despite positive analyst sentiment. Private bank Berenberg significantly raised its price target for the software giant from €242 to €299 while maintaining a "Buy" rating. Berenberg analyst Nay Soe Naing described SAP as a "safe haven" in the software industry, noting that customers' transition to cloud-based offerings is accelerating. The new target represents approximately 11% upside potential from current levels. The stock has shown impressive performance compared to its 52-week low of €163.82 from April 2024, representing a gain of nearly 40%, though it remains about 4-5% below its February 2025 high of €283.50.

Strong Business Performance Fuels Growth Potential

The positive analyst outlook is supported by SAP's robust financial results from the most recent quarter, where the company increased revenue by 10.75% year-over-year to €9.38 billion, while earnings per share climbed from €1.02 to €1.37. The Walldorf-based company continues to strengthen its position in artificial intelligence through strategic partnerships, including an expanded collaboration with communications specialist Vonage aimed at developing AI-powered applications for businesses worldwide. Analysts forecast earnings per share of €6.28 for the full year 2025, with the average price target across all analysts currently standing at approximately €287.