JMP Securities Maintains Market Perform Rating on SAP SE (SAP) Stock

On Friday, May 23, JMP Securities analyst Patrick Walravens reiterated a “Market Outperform” rating on SAP SE (NYSE:SAP) with a steady $330 price target.

The analyst pointed out that the stock is currently trading at a 2026 estimated enterprise value (EV) to revenue multiple of 7.5 times, and a 2026 estimated EV to free cash flow (FCF) multiple of 32 times. Walravens’ price target of $330 indicates that SAP SE (NYSE:SAP) could be valued at an EV/revenue multiple of 8.3 times and a 2026 EV/FCF multiple of 35 times, which represents a premium of about 10% over the median multiple of SAP SE’s (NYSE:SAP) peers.

JMP Securities Maintain Positive Outlook on SAP SE (SAP)

A data centre room with cloud technology, illustrating the enterprise application software services.

According to the analyst, the premium is justified as the company has a large core market, strong backlog growth, and a solid leadership team.

Walravens also described a hypothetical scenario where SAP SE’s (NYSE:SAP) stock could rise even higher. If the market valued SAP at 40 times its estimated 2026 cash flow, as forecasted by JMP Securities, the stock price could reach about $375. This hypothetical example shows the potential for SAP SE (NYSE:SAP) to grow if its financial performance can meet or exceed expectations.

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.

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