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SAP stock surges after Arete Research raises price target by 27%

A bold €270 target revives investor hope in SAP’s turnaround. Can its cloud strategy and AI bets finally unlock lasting profitability?

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In this image we can see the information board, buildings, shed, trees, electric cables and sky...
In this image we can see the information board, buildings, shed, trees, electric cables and sky with clouds.

SAP stock surges after Arete Research raises price target by 27%

SAP has received a significant boost after Arete Research upgraded its stock from 'Neutral' to 'Buy'. The firm also raised the price target by 27%, setting it at €270. This shift reflects growing confidence in the company’s cloud transformation and operational improvements.

The new target suggests a potential upside of around 30% from the current share price of €208.15, though it remains below SAP’s 52-week high of €313.28.

Arete Research’s upgrade follows SAP’s ongoing strategic realignment, which began in February 2025. COO Sebastian Steinhäuser has led efforts to improve cloud business margins, a key factor in the firm’s revised outlook. Analysts now see the company’s operational maturity and cloud revenue growth as strong drivers for future profitability.

Despite the positive adjustment, expectations remain cautious. The stock’s relative strength index (RSI) sits at 51.8, keeping it in neutral territory. Experts also note that a sustainable break above €220 will be crucial before any return to previous highs.

No specific individuals beyond Steinhäuser have been publicly linked to the restructuring. Instead, broader strategies—such as cloud expansion and AI investments—have shaped SAP’s recent direction.

The €270 target, while ambitious, still falls short of the company’s peak value over the past year. This suggests room for further growth if current trends continue.

The upgrade highlights renewed optimism around SAP’s cloud and operational strategies. A sustained move above €220 could signal stronger momentum ahead. For now, the stock’s performance will depend on maintaining progress in profitability and market confidence.

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