SAP (SAP, Financial) reported a significant increase in revenue for the first quarter, reaching EUR 9.01 billion compared to EUR 8.04 billion in the same period last year. The company's CEO, Christian Klein, highlighted the substantial growth in their cloud backlog, which expanded by 29% when adjusted for constant currencies, contributing to a remarkable double-digit rise in total revenue.
The company's business model, with 86% of its revenue being predictable, continues to demonstrate resilience amidst economic uncertainties. The portfolio, enhanced by artificial intelligence, supports businesses across more than 130 countries in managing supply chain challenges and achieving operational efficiencies.
SAP's CFO, Dominik Asam, emphasized the robust start to the year despite a volatile market environment. The company's achievements in revenue growth and operating profit are attributed to stringent cost management and strategic execution. Looking forward, SAP remains cautious about the external economic landscape, aiming to maintain a strong focus on both profitability and cash flow throughout the remainder of the year.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for SAP SE (SAP, Financial) is $315.19 with a high estimate of $368.57 and a low estimate of $288.13. The average target implies an upside of 24.88% from the current price of $252.40. More detailed estimate data can be found on the SAP SE (SAP) Forecast page.
Based on the consensus recommendation from 30 brokerage firms, SAP SE's (SAP, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for SAP SE (SAP, Financial) in one year is $175.91, suggesting a downside of 30.31% from the current price of $252.4. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the SAP SE (SAP) Summary page.
