SAP SE (NYSE:SAP) has fallen 27.93% on a year-to-date basis, but Wall Street expects more than 48.45% upside over the next 12-months. The stock also ranks among our Best Stocks to Buy Before the Next Bull Run as it is trading close to its 52-week lows and analysts expect significant upside.
SAP SE (NYSE:SAP) has gained spotlight after its fiscal Q1 2026 earnings, released on April 23. During the quarter, the company posted $11.17 billion in revenue, reflecting 8.44% year-over-year but missing the consensus by $17.79 million. On the bright side, the GAAP EPS came in at $1.94 and topped the estimates by $0.14.
Management attributed quarterly growth to 19% year-over-year growth in Cloud revenue and 23% growth in Cloud ERP Suite. Notably, the company’s backlog grew by 20% to reach €21.9 billion.
Following the result, on April 30, Adam Wood from Morgan Stanley reiterated a Buy rating on the stock with a price target of €190. Earlier, on April 29, Barclays reiterated a Buy rating on the stock and raised the price target from $256 to $257. Analysts at Barclays noted that during Q1, management addressed key AI concerns, which have reduced downside risks for Sapphire.
SAP SE (NYSE:SAP) is a multinational enterprise software company that provides solutions for enterprise resource planning, supply chain management, procurement, and customer experience. Its offerings include the SAP S/4HANA and SAP Business Technology Platform.
While we acknowledge the potential of SAP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 10 Best Stocks to Buy While the Market Is Down and 14 Stocks That Will Double in the Next 5 Years.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
