BofA Trims SAP Price Objective Amid 'Slightly' Lower Q2 Cloud Margins

12:00 PM EDT, 07/24/2026 (MT Newswires) -- BofA Global Research trimmed its price objective for SAP (SAP.F) to 208 euros from 210 euros following the German software company's second-quarter results, mainly due to "slightly" lower cloud margins. "The acceleration in [current cloud backlog] to+26%, implying stable CCB ex M&A vs Q1 at +25%, was the main positive surprise vs consensus at 24.3%, and is at odds vs the end 2026 guidance of slight deceleration. On the negative side, EBIT was a 5% miss, driven by higher R&D costs (token consumption), but management characterized it as an anomaly with model optimization and stable headcount expected," analysts wrote in a Friday note. The research firm said its overall forecasts for SAP are "largely unchanged," expecting an EPS and revenue compound annual growth rate of 18% and 11%, respectively, through 2027. "SAP is our top large-cap Software pick for 2026, is one of our "25 stocks for 2026 and is on our Europe 1 list of top ideas," BofA added, reiterating its buy rating on the stock.