SAP SE sees price target hike amid strong cloud growth

SAP SE is experiencing positive momentum driven by strong cloud growth and favorable analyst assessments. Morgan Stanley has significantly raised its price target for the European software giant from 190 EUR to 215 EUR, representing an increase of approximately 13.2%, while maintaining an “overweight” rating.

Financial data from the second quarter of 2026 shows SAP achieved a revenue of 9.88 billion USD and a profit of 2.18 billion USD, resulting in a profit margin of 22.07%. The company’s cloud segment continues to be a primary growth driver, recording double-digit increases throughout 2026. Long-term projections suggest significant expansion, with estimates predicting SAP could reach a revenue of 53.4 billion EUR and a profit of 11.2 billion EUR by 2029.