Warburg Research Raises PT on SAP (SAP), Maintains Buy

SAP SE (NYSE:SAP) is one of the 10 software stocks analysts are upgrading. On June 13, research firm Warburg Research upped the price objective on the company’s stock from €275 to €295, while maintaining a “Buy” rating. The firm’s analyst, Andreas Wolf, sees further cloud growth and margin improvements, which led to the increase in long-term estimates. Furthermore, the analyst opines that AI is expected to fuel growth further and make software development more efficient.

Warburg Research Raises PT on SAP (SAP), Maintains Buy

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

In Q1 2025, SAP SE’s current cloud backlog expanded 29% at constant currencies and the total revenue encountered a double-digit increase. With a share of more predictable revenue of 86%, the business model is resilient in uncertain times. Furthermore, SAP SE’s AI-powered portfolio allows companies to navigate supply chain disruptions in more than 130 countries. In Q1 2025, the company’s cloud and software revenue rose 14% to €7.94 billion, and was up 13% at constant currencies.

In January 2024, SAP SE announced a company-wide restructuring program, which was concluded in Q1 2025. The restructuring payouts came in at €2.5 billion for FY 2024 and €0.3 billion for Q1 2025. Furthermore, ~€0.4 billion is anticipated to be paid out in the balance of 2025.

SAP SE offers enterprise applications and business solutions.

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