Barclays and BMO Cut SAP SE (SAP) Price Targets but Remain Bullish

SAP SE (NYSE:SAP) is one of the 15 AI Stocks With Explosive Growth Potential.

Barclays and BMO Cut SAP SE (SAP) Price Targets but Remain Bullish

SAP SE (NYSE:SAP) is one of the best AI stocks with explosive growth potential. On February 2, Barclays reduced its price target on SAP SE (NYSE:SAP) from $348 to $283 and maintained an Overweight rating on the stock.

This update comes after the company reported fourth-quarter results, which Barclays thinks “were softer.” However, the research firm said the drop in the share price after the results “appeared harsh.” Barclays believes many of the risks are already reflected in the stock’s current price.

Earlier, on January 30, BMO Capital also lowered its price target on SAP SE (NYSE:SAP) from $320 to $245 but kept its Outperform rating on the stock. BMO pointed to the company’s failure to meet its guidance on cloud computing business growth targets in the December quarter. This miss came even though SAP SE’s (NYSE:SAP) management had earlier expressed confidence in meeting or exceeding those targets.

The research firm pointed out that SAP SE (NYSE:SAP) “picked a poor time to miss,” especially as investors are already concerned about AI’s impact on the software industry.

Despite these concerns, BMO is “supportive of SAP’s cloud conversion story,” highlighting the company’s strong retention rate.

SAP SE (NYSE:SAP) is a German multinational software company with a leading position in enterprise applications and business AI. The company is one of the world’s largest providers of enterprise resource planning software.

While we acknowledge the potential of SAP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SAP and that has a 100x upside potential, check out our report about the cheapest AI stock.

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