SAP stock: All-time high ahead of quarterly earnings

Last Updated: 22. Januar 2024By

SAP stock reached a new all-time high in today’s morning trading and is now trading at just under 150 euros for the first time (as of January 22, around 11 a.m.). Overall, the performance of the paper is impressive. On an annual basis, the stock is up around 40 percent, and in the last 3 months, it has gained about 20 percent.

Now, with SAP, the German reporting season will also start on Thursday, January 24. The Q4 numbers could give further impetus to the SAP stock, and the outlook for the coming quarters is good. Of interest to investors: In the latest analysis, Deutsche Bank has a more positive view of the stock of the most valuable company in Germany.

SAP: Focus on quarterly figures With the figures for the 4th quarter and the whole of 2023, SAP opens the reporting season in Germany. These will be presented and explained on Thursday, January 24. The numbers could provide fresh impetus for the SAP stock. This largely depends on whether and how the software company achieved its goals for 2023.

For the whole year, the company expected an adjusted profit between 8.65 and 8.95 billion euros (up 8 to 12 percent compared to 2022) after 3 of 4 quarters. Revenue from the cloud business is expected to be between 14 and 14.2 billion euros (up about 23 percent). In addition to the Q4 figures, investors will be particularly interested in the current financial year.

SAP stock: Potential despite all-time high Even though the SAP stock has now reached a new all-time high, there is still further potential for growth. For the current year of 2024, a good business development is expected, and tech stocks are expected to continue to benefit from the AI boom and potential interest rate cuts in the coming months.

Analysts‘ opinions are mixed. While, for example, the experts at Barclays saw little room for maneuver in the analysis from early January, Deutsche Bank has now significantly increased the target price: the stock is still rated as „buy,“ but the target price was raised from 145 to 170 euros. Investors should keep an eye on the SAP stock despite – or perhaps because of – its strong performance in recent years.