JPMorgan upgrades SAP to Overweight and lifts price target to €275 on AI production shift
JPMorgan raised its rating on SAP from Neutral to Overweight and increased its price target to €275, up from €175. The bank said the move of enterprise AI from pilot projects to full‑scale production favors SAP’s integrated systems, data‑quality tools and cost‑control capabilities. Following the note, SAP shares rose about 2% in early trading. JPMorgan also nudged its 2027 non‑IFRS EPS estimate to €8.38 from €8.20 and highlighted a 28% jump in the current cloud backlog.
Why it matters
The higher rating and target suggest JPMorgan expects stronger margins and growth from SAP’s AI‑driven cloud offerings, which could support a near‑term price rally. The revised EPS forecast and backlog growth signal higher earnings potential through 2028.
Key facts
- 1JPMorgan upgraded SAP to Overweight from Neutral. investing.com
- 2The price target was raised to €275 from €175. investing.com
- 3SAP shares rose 2.1% in early German trading. investing.com
- 4JPMorgan lifted its 2027 non‑IFRS EPS estimate to €8.38 from €8.20. investing.com
- 5SAP’s current cloud backlog grew 28% to €24.1 bn. asktraders.com
- 6Cloud revenue increased 26% in Q3. asktraders.com
Summary written by AlphAI AI Desk from 7 of 7 sources. Not investment advice. Figures are as stated by the linked sources.