Summary:
- SAP SE reports a significant revenue increase in Q2, driven by strong cloud growth.
- Analysts see potential upside for SAP, with price targets suggesting a 9.26% increase from current levels.
- GuruFocus' GF Value suggests a possible overvaluation at current stock prices.
SAP SE's Q2 Financial Performance
SAP SE (SAP, Financial) has announced its financial results for the second quarter, showcasing a robust revenue growth. The company reported a Q2 revenue of €9.03 billion, marking an 8.9% increase compared to the same period last year. A significant driver of this growth was the company's cloud segment, which experienced a remarkable 24% rise in cloud revenue. Additionally, SAP's Cloud ERP Suite revenue surged by 30%, reflecting the growing demand for cloud-based enterprise solutions. The company's non-IFRS operating profit also saw a substantial increase, climbing to €2.6 billion, which represents a 32% gain.
Wall Street Analysts' Forecast
According to the one-year price targets provided by 11 analysts, the average target price for SAP SE (SAP, Financial) is projected at $334.66. These estimates range from a high of $403.49 to a low of $286.50. The average target implies a potential upside of 9.26% from the current stock price of $306.29. For more detailed estimates, visit the SAP SE (SAP) Forecast page.
Reflecting the overall sentiment from 28 brokerage firms, SAP SE's (SAP, Financial) average brokerage recommendation currently stands at 2.0, indicating an "Outperform" status. The recommendation scale spans from 1 to 5, where 1 represents a Strong Buy and 5 indicates a Sell.
GuruFocus Valuation Analysis
Based on GuruFocus' calculations, the estimated GF Value for SAP SE (SAP, Financial) one year from now is $212.07. This estimation points to a potential downside of 30.76% from the current price of $306.29. The GF Value represents GuruFocus' assessment of the fair value at which the stock should be trading. This value is derived from historical trading multiples, past business growth, and future performance estimates. More comprehensive data can be accessed on the SAP SE (SAP) Summary page.
