AlphaValue/Baader Europe Updates Price Target, Estimates for SAP After 'Solid' Q3 Results

06:19 AM EDT, 10/23/2026 (MT Newswires) -- AlphaValue/Baader Europe revised its price target and earnings estimates for SAP (SAP.F) after the German software company reported "solid" third-quarter performance across all its indicators. "We are raising our organic revenue by approximately 1.5% for 2027, driven by a cloud business that confirms its trajectory and a backlog that secures visibility. Combined with a now proven cost discipline, this revision translates into an upgrade of our estimated operating margin," analysts said Friday. As such, the research firm raised its price target to 216 euros from 204 euros. Meanwhile, AlphaValue/Baader Europe's full-year 2026 and 2027 EPS projections remain "globally unchanged" despite operational gains as borrowing costs and acquisition-related cash outflows impacted financial results. Analysts rate the stock at reduce as shares look "fairly valued" at current levels. The research firm said the market is expected to wait for "dedicated metrics" on AI monetization before a potential rerating. "Nevertheless, we believe SAP remains the most healthily exposed SaaS stock to this technological transformation. The group is funding it through its own cash generation, anchoring it to a captive installed base, and securing it with a steadily growing backlog," the note said.