Thanks to positive analyst comments after the latest quarterly report, SAP maintained its place as the most valuable DAX company on Tuesday. The shares of the software group had reached their highest level since January 2022 in the morning and were last listed up 1.79 percent at EUR 122.02.
SAP shares have been recovering since they reached an interim low of EUR 79.58 at the end of September. Statements by the company ahead of the weekend on future growth provided the latest price boost. According to this, the total sales of the software developer should increase by a double-digit percentage from 2024.
On Tuesday, positive analyst commentary reignited the rally in SAP shares after a small pullback earlier in the week. Analyst Amit Harchandani from the US Citigroup, for example, praised the progress made by Walldorfer, for example with regard to the focus on rental software via the Internet (cloud). Business is also going well overall.
The Citigroup analyst upgraded the shares to “buy,” predicting a total return of at least 15 percent over the next 12 months. He increased the price target from 120 to 150 euros. SAP’s shares offer potential for an even more sophisticated valuation, also because of their defensive qualities and the fantasy for future profit distributions.
Analyst Mohammed Moawalla from the US investment bank Goldman Sachs increased his target for SAP shares from 145 to 150 euros. He argued that sustained momentum in the cloud business offers scope for Walldorf’s medium-term growth targets.
The analysts Harchandani and Moawalla have thus called the highest price target for SAP among all 30 experts recorded by the Bloomberg news agency. A total of 18 experts recommend buying it. Eleven prefer to remain on the sidelines for the time being and await further developments. At the moment, only Charles Brennan from the Jefferies analyst firm is recommending a sale of the SAP papers.
Brennan had already critically examined the business figures for the first quarter on Friday. These were above expectations, but not for the right reason. Investors are keeping an eye on the cloud business, which is roughly in line with expectations. However, the good performance is due to one-time positive effects in the software license business.
With the price jump in the morning, however, SAP brought a market capitalization of 150 billion euros back on the scales. No other DAX group is that heavy. The industrial group Siemens, Deutsche Telekom and the sports car manufacturer Porsche follow in the ranks behind with valuations of up to 117 billion euros.
When making the comparison, however, it should be noted that the most valuable DAX company to date, the gases company Linde, was removed from the index at the end of February. He had decided to withdraw from the Frankfurt Stock Exchange and have his shares traded on Wall Street.
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