Barclays Raises SAP Share Target to €300, Citing Accelerating Cloud Adoption and AI Demand.

Barclays raised SAP's price target to €300 from €275, citing accelerating cloud adoption, growing AI demand, and the company's Business Data Cloud offering as key drivers. The bank reiterated its Overweight rating and forecasts a 13% revenue CAGR to FY30 and €14.3 EPS by 2030. Barclays estimates that AI and BDC could contribute €3.5 billion cumulatively to revenue by FY30, and expects significant operating leverage and margin improvement.

Barclays has raised its price target for SAP SE (NYSE:SAP) to €300 from €275, driven by the company's accelerating cloud adoption, growing AI demand, and the potential of its Business Data Cloud (BDC) offering. The bank reiterated its Overweight rating and forecasted a 13% revenue CAGR to FY30 and €14.3 EPS by 2030. Barclays estimates that AI and BDC could contribute €3.5 billion cumulatively to revenue by FY30, expecting significant operating leverage and margin improvement [2].

SAP SE, together with its subsidiaries, provides applications, technology, and services worldwide. The company's strong performance in the first quarter of 2025, highlighted by a 8.9% year-over-year revenue growth, underscores its robust financial health. The software maker reported $1.70 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.63 by $0.07 [1]. SAP's Business Data Cloud (BDC) is poised to play a pivotal role in its future growth, as it integrates AI and machine learning capabilities to offer more comprehensive data solutions.

Barclays' upgrade comes amidst a broader trend of institutional investors increasing their stakes in SAP. The Manufacturers Life Insurance Company, for instance, reduced its holdings by 30.3% during the first quarter, yet still held a position worth $42,141,000 at the end of the period [1]. Other notable investors such as Stony Point Capital LLC, Bartlett & CO. Wealth Management, and Founders Capital Management have also significantly increased their positions in SAP, reflecting the growing confidence in the company's prospects [2].

The market's reaction to these developments is mixed. While some analysts have raised their price targets and ratings, others have maintained their cautious stance. For example, UBS Group upgraded SAP to a "strong-buy" rating, while JMP Securities boosted their price target to $375.00 and gave the company a "market outperform" rating. Conversely, Erste Group Bank lowered its rating from "buy" to "hold" [1].

As SAP continues to innovate and expand its offerings, it remains a key player in the enterprise software market. The company's strategic investments in AI and cloud technology position it well to capitalize on future growth opportunities. Investors should closely monitor SAP's quarterly earnings reports and other financial indicators to assess the company's performance and the validity of Barclays' optimistic projections.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-the-manufacturers-life-insurance-company-has-4214-million-position-in-sap-se-sap-2025-09-01/
[2] https://www.marketbeat.com/instant-alerts/filing-stony-point-capital-llc-invests-584-million-in-sap-se-sap-2025-08-29/