- SAP shares rise 5% after surpassing Q1 earnings expectations.
- Cloud revenue significantly boosts financial performance.
- Analysts foresee a strong upside potential in SAP's stock price.
SAP SE (SAP, Financial) experienced a notable 5% increase in its stock price following the release of its first-quarter earnings report, which exceeded market expectations. The company reported an impressive adjusted earnings per share of €1.52, alongside a 12% increase in revenue, reaching €9.013 billion. A key driver of this growth was the surge in cloud revenue, totaling €4.993 billion, which contributed to a 29% increase in the cloud backlog, now totaling €18.2 billion.
Wall Street Analysts Forecast
According to one-year price targets provided by 10 analysts, SAP SE is projected to reach an average target price of $315.19. The analysts' expectations range from a high of $368.57 to a low of $288.13, indicating a potential upside of 24.88% from the current price of $252.40. For more detailed estimate data, visit the SAP SE (SAP, Financial) Forecast page.
Brokerage Recommendations
With input from 30 brokerage firms, SAP SE's average recommendation is at 2.1, categorizing the stock as "Outperform". This rating scale spans from 1 to 5, where 1 represents a Strong Buy and 5 signifies a Sell.
Intrinsic Value Considerations
GuruFocus estimates the one-year GF Value for SAP SE to be $175.91, suggesting a potential downside of 30.31% from the current price of $252.40. The GF Value is a measure of what the stock’s fair trading value should be, determined by historical trading multiples, past business growth, and future performance projections. Detailed data is available on the SAP SE (SAP, Financial) Summary page.
