Piper Sandler Maintains Overweight with €220 Target, Barclays Cuts SAP Goal to $283
Piper Sandler kept an Overweight rating on SAP SE and set a €220 price target, citing strength in hyperscaler, consumption and vertical segments despite sector pessimism over seat compression and AI-generated code. Barclays maintained its Overweight rating but cut its price target to $283 from $348 after softer Q4 results.
1. Piper Sandler Rating and €220 Price Target
Piper Sandler maintained an Overweight rating on SAP SE with a €220 price target after transferring coverage. The firm highlighted strength in hyperscaler, consumption and vertical segments as key growth drivers despite sector concerns over seat compression and AI-generated code.
2. Barclays Adjusts Target to $283
Barclays kept its Overweight rating but reduced SAP's price target to $283 from $348 following softer Q4 2025 results. Analysts viewed the stock's recent decline as overdone, suggesting much of the negative sentiment is already priced in.
3. Strong Q4 Performance and FY25 Guidance
SAP delivered operating profit and free cash flow above expectations for FY2025, driven by disciplined execution and robust customer demand. Management projects an effective tax rate of 32% and free cash flow of about €8 billion for the year.