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On May 23, BMO Capital Markets upped the price objective on SAP SE (NYSE:SAP)’s stock to $330 from $320 and kept an “Outperform” rating.
The firm has expressed optimism about the customer and partner interest in BDC (Business Data Cloud). Furthermore, the management has reiterated views on longer-term revenue growth potential, which can reach mid-teens.
A data centre room with cloud technology, illustrating the enterprise application software services.
On February 13, SAP SE (NYSE:SAP) announced SAP Business Data Cloud, a solution unifying SAP and third-party data throughout an organization. It offers a trusted data foundation that organizations require to make more impactful decisions and foster reliable AI.
For FY 2025, SAP SE (NYSE:SAP) currently expects €21.6 billion – €21.9 billion of cloud revenue at constant currencies, reflecting a rise of 26% - 28%. It expects €33.1 – €33.6 billion of cloud and software revenue at constant currencies, implying 11% - 13% growth.
SAP SE (NYSE:SAP)’s Q1 2025 demonstrates a strong start to the year amidst a highly volatile environment, with healthy total revenue growth and operating profit expansion. The company’s total revenue (IFRS) rose 12% to €9,013 million. These results exhibit its cost discipline and focused execution.
While we acknowledge the potential of SAP to grow, 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 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.