BMO Capital Markets Forecasts Strong Price Appreciation for SAP (NYSE:SAP) Stock

Key Points

• BMO Capital Markets raised its price target on SAP from $175 to $177 and kept an outperform rating, implying about 21% upside from the prior close.
• Analyst opinion remains generally positive overall, with SAP carrying a Moderate Buy consensus and an average price target of $267, despite some firms trimming targets or downgrading the stock recently.
• SAP’s latest operating results were mixed but highlighted strong cloud growth: cloud backlog rose 27%, cloud revenue increased 22%, and total revenue climbed 9%, though earnings per share missed estimates and operating profit guidance was lowered.

SAP (NYSE:SAP - Get Free Report) had its price objective increased by analysts at BMO Capital Markets from $175.00 to $177.00 in a report issued on Friday. The firm presently has an "outperform" rating on the software maker's stock. BMO Capital Markets' target price indicates a potential upside of 21.03% from the stock's previous close.

Several other research analysts also recently weighed in on the company. TD Cowen dropped their price target on SAP from $230.00 to $210.00 and set a "buy" rating for the company in a research note on Friday, July 17th. Santander upgraded shares of SAP from a "neutral" rating to an "outperform" rating in a research report on Friday, April 24th. Weiss Ratings cut shares of SAP from a "hold (c)" rating to a "hold (c-)" rating in a research note on Thursday, July 16th. Barclays dropped their price objective on shares of SAP from $257.00 to $255.00 and set an "overweight" rating for the company in a report on Tuesday. Finally, Wall Street Zen lowered SAP from a "buy" rating to a "hold" rating in a research report on Saturday, May 16th. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $267.00.

SAP Stock Performance

SAP stock opened at $146.24 on Friday. The stock's fifty day moving average price is $165.78 and its 200-day moving average price is $184.61. The company has a market cap of $179.66 billion, a P/E ratio of 19.76, a price-to-earnings-growth ratio of 1.71 and a beta of 1.14. SAP has a 1 year low of $144.97 and a 1 year high of $299.48. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.07 and a quick ratio of 1.07.

SAP (NYSE:SAP - Get Free Report) last issued its quarterly earnings data on Friday, February 27th. The software maker reported $1.99 earnings per share (EPS) for the quarter. SAP had a net margin of 20.08% and a return on equity of 17.31%. The firm had revenue of $11.06 billion during the quarter. On average, equities analysts forecast that SAP will post 8.28 earnings per share for the current year.

Hedge Funds Weigh In On SAP

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Brighton Jones LLC lifted its holdings in shares of SAP by 91.1% in the 4th quarter. Brighton Jones LLC now owns 2,633 shares of the software maker's stock valued at $648,000 after acquiring an additional 1,255 shares during the last quarter. Baird Financial Group Inc. bought a new position in shares of SAP during the 1st quarter valued at approximately $242,000. AQR Capital Management LLC increased its position in shares of SAP by 49.0% during the 1st quarter. AQR Capital Management LLC now owns 16,309 shares of the software maker's stock valued at $4,378,000 after purchasing an additional 5,363 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC purchased a new stake in SAP during the 1st quarter valued at $2,681,000. Finally, Sivia Capital Partners LLC lifted its position in SAP by 2.3% in the second quarter. Sivia Capital Partners LLC now owns 3,050 shares of the software maker's stock worth $928,000 after buying an additional 69 shares during the last quarter.

SAP News Summary

Here are the key news stories impacting SAP this week:

• Positive Sentiment: SAP reported strong cloud momentum, with current cloud backlog rising 27%, cloud revenue up 22%, and total revenue up 9%, signaling that demand for its enterprise software remains solid. SAP Quarterly Statement Q2 2026
• Positive Sentiment: Investors appeared encouraged that SAP’s cloud growth is holding up despite AI-related worries, with the company saying AI in enterprise software needs to prove value in more complex business processes before meaningful returns show up. SAP CFO says AI must move beyond chatbot 'low-hanging fruit' before seeing returns
• Neutral Sentiment: SAP beat the prior-year comparison on revenue growth, but earnings per share of $1.82 missed estimates of $2.00 and operating profit growth slowed, which keeps some pressure on the stock’s near-term fundamentals. SAP Earnings Report
• Neutral Sentiment: SAP also updated full-year revenue guidance to about $47.3 billion, modestly above consensus, but lowered its operating profit outlook due in part to acquisition-related dilution, creating a mixed read-through for investors. SAP Second-Quarter Revenue Up on Cloud Business Results, Operating Profit Guidance Lowered on Slowing Growth
• Negative Sentiment: Unusually high put option activity suggests some traders are still hedging for downside, reflecting lingering caution after the earnings and guidance update. SAP Sees Unusually High Options Volume

About SAP

SAP SE is a global enterprise software company headquartered in Walldorf, Germany. Founded in 1972 by five former IBM engineers, the company's name is an acronym for Systeme, Anwendungen und Produkte in der Datenverarbeitung (Systems, Applications & Products in Data Processing). SAP develops and sells software and services that help organizations manage business processes across finance, human resources, procurement, manufacturing, supply chain and customer relationships.

SAP's product portfolio spans on‑premises and cloud offerings, anchored by its enterprise resource planning (ERP) solutions such as SAP S/4HANA and the SAP HANA in‑memory database and platform.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.