SAP sees stock momentum amid cloud growth and security patches

SAP is experiencing significant market activity driven by its ongoing share buyback program and sector-wide speculation. Rumors regarding potential takeover talks between investor Silver Lake and US competitor Workday have boosted interest in the software sector, benefiting SAP as a major European player.

On the technical side, SAP addressed 28 security vulnerabilities during its August 14 patch day. This included a critical flaw in the Commerce Cloud ‘Data Hub Adapter’ module, which carried a maximum CVSS severity score of 10.0. The vulnerability, which could have allowed unauthorized access, has been resolved.

Financial analysts remain largely optimistic about the company, with a majority recommending a buy. While price targets vary significantly—ranging from 164 euros from UBS to 215 euros from Goldman Sachs—the consensus is supported by strong cloud performance. SAP reported a 27 percent year-over-year increase in cloud order backlog to 22.9 billion euros, alongside a 22 percent rise in cloud revenue.