Sap: JMP Securities Raises PT to $375, Maintains Market Outperform

Sap: JMP Securities Raises PT to $375, Maintains Market Outperform

SAP AG (NYSE: SAP), a global leader in enterprise software, has seen its price target raised by JMP Securities to $375, up from the previous $330, while maintaining the Market Outperform rating. This adjustment follows SAP's strong second-quarter 2025 earnings report, which exceeded market expectations.

The earnings report highlighted SAP's robust financial performance, with non-IFRS earnings per share (EPS) of €1.50, beating the consensus estimate of €1.45. The company also reported a 12% year-over-year (YoY) increase in total revenue, reaching €9.03 billion, slightly below the consensus estimate of €9.08 billion. Notably, SAP's cloud revenue, a key growth driver, reached €5.13 billion, representing a 28% YoY increase in constant currency terms.

JMP Securities cited the company's strong performance in the cloud sector, particularly in the Cloud ERP segment, which grew by 34% YoY in constant currency terms. The analyst firm also noted that the company's backlog for cloud services increased by 28% YoY, albeit slightly lower than the previous quarter's growth rate of 29%.

Additionally, JMP Securities mentioned that SAP's stock has shown resilience, rising by 24% year-to-date, despite a 2% drop in share price following the earnings announcement. The stock has outperformed the broader market indices, with the Russell 3000 and S&P 500 both rising by 7% year-to-date.

Separately, Piper Sandler has also adjusted its target price for SAP, initially raising it to €355 due to strong demand for ERP solutions, but later lowering it to €345 due to concerns about sales cycles in the public sector and manufacturing industries. Despite this adjustment, Piper Sandler maintains an Overweight rating on SAP, reflecting confidence in the company's cloud growth and strategic position.

Overall, the positive earnings report and the analyst upgrades indicate that SAP continues to perform well, particularly in its cloud segment. Investors should closely monitor the company's future earnings reports and any updates from the analysts.

References:
[1] https://id.investing.com/news/analyst-ratings/jmp-naikkan-target-harga-saham-sap-menjadi-375-berkat-pertumbuhan-pendapatan-cloud-93CH-2838935
[2] https://ca.investing.com/news/analyst-ratings/solid-biosciences-stock-rating-reiterated-at-market-outperform-by-jmp-93CH-4109471
[3] https://finance.yahoo.com/news/terawulf-wulf-gets-initiated-market-151320268.html
[4] https://au.investing.com/news/analyst-ratings/abivax-stock-rating-reiterated-at-market-outperform-by-citizens-jmp-93CH-3932321