SAP SE (NYSE:SAP) is among the most fantastic stocks every investor should pay attention to. A vote of confidence came in for SAP on October 31, after Adam Wood, an analyst from Morgan Stanley, reaffirmed his bullish stance for the stock with a Buy rating and raised his price target from €295 to €300. The analyst lists SAP among his top picks, emphasizing that the company’s competitive positioning remains solid and continues to see strong growth potential.
SAP’s stock has gained around 3.5% year-to-date and has underperformed the broader STOXX Europe 600 and S&P 500 indices, which have gained over 14.2% and 16.5%, respectively. Wood said that this underperformance is partly driven by investors’ concerns over macroeconomic conditions and worries over AI adoption and broader growth. He, however, argues that these concerns are overstated and that SAP’s fundamentals remain intact, which he believes are supported by the company’s ongoing transition to its S/4HANA cloud platform.
Wood further projects that SAP SE (NYSE:SAP) could potentially double its earnings per share by 2030, underscoring a robust long-term earnings outlook.
On the fundamental side, the company reported its Q3 2025 results on October 22, stating that its revenue in the quarter grew 11% year-over-year to €9.1 billion in constant currency (cc) terms. However, the spotlight was on the cloud side of the business, as total cloud revenue rose 27%, with Cloud ERP Suite revenue surging 31%. Moreover, the current cloud backlog also rose 27% (in cc) to €18.84 billion.
On the strong results, CEO Christian Klein stated –
“SAP delivered a great Q3 with strong cloud revenue growth of 27%. We are gaining market share as our customers are adopting solutions across the entire Business Suite, including Business Data Cloud and AI at accelerated pace. For Q4 we are executing against a strong pipeline – which gives us confidence in our accelerating total revenue growth ambition for 2026.”
SAP SE (NYSE:SAP) develops enterprise software that helps organisations manage finance, supply chains, HR, procurement, and customer operations. Its cloud portfolio, including SAP S/4HANA, supports digital transformation and real-time data management.
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