SAP Beats Q3 Expectations, Analysts Expect ‘Big Cash-Flow Ramp In 2025’
Shares of SAP SE (NYSE:SAP) continued to rise in early trading on Tuesday after the company reported its third-quarter results.
The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.
KeyBanc Capital Markets On SAP
Analyst Jackson Ader reaffirmed an Overweight rating, while raising the price target from $230 to $270.
SAP delivered another quarter of more than 30% Cloud ERP growth and accelerated organic growth in constant currency terms, Ader said in a note. Current cloud backlog (CCB) grew 29%, up from 28% in the second quarter, he added.
“FX headwinds actually caused the reported number to miss estimates, but we believe investors will look through that to see the positive momentum,” the analyst wrote. Although the company’s Ambition 2025 targets have moved higher in recent quarters, they “continue to be de-risked,” he further stated.
JMP Securities On SAP
Analyst Patrick Walravens reiterated a Market Outperform rating, while lifting the price target from $245 to $300.
SAP’s quarterly results were strong, with revenue and earnings slightly beating consensus estimates, Walravens said. Revenue growth of 10% year-on-year was flat …
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