JPMorgan Lifts SAP to Overweight as Buyback Rolls On at Discount Prices
Published on 11/12/2026 at 14:01 | Editorial boerse-global.de
SAP's capital-return programme and its artificial-intelligence story converged this week, with the Walldorf-based software group disclosing a fresh batch of share purchases just as JPMorgan turned constructive on the stock.
The company bought back roughly 465,000 of its own shares between 2 and 6 November, a tranche worth about EUR 95.4 million. That brings total repurchases under the current programme to around 9.6 million shares, a figure that has been accumulated since the end of July 2026 at a cost of roughly EUR 1.66 billion. The disclosure relates to the 2026 buyback programme. SAP shares were down 0.4% on Tuesday.
Buying Below the Old Watermark
The pricing backdrop is notable. Between April and August 2025, SAP paid an average of EUR 257.60 per share for its repurchases. At today's EUR 211.50, the group is now buying materially cheaper than it did during that earlier stretch — a detail that matters when weighing whether continued capital deployment is money well spent.
What ultimately justifies further buybacks is the cash the business generates. SAP's cloud engine has been supplying plenty of evidence on that front. Third-quarter 2026 cloud revenue climbed 26% to EUR 6.67 billion, while the short-term cloud backlog — bookings expected to convert into revenue — rose 28% to EUR 24.1 billion. Total group revenue for the quarter came in at EUR 10.27 billion.
Should investors sell immediately? Or is it worth buying SAP?
Profitability moved in step. Adjusted operating profit advanced 18% to EUR 3.03 billion, and management is guiding toward a full-year free cash flow of about EUR 10 billion. For 2026 as a whole, SAP projects constant-currency adjusted operating profit of EUR 11.8 billion to EUR 12.2 billion.
JPMorgan Doubles Its Target
The rating change landed on Monday, when JPMorgan moved SAP from "Neutral" to "Overweight" and lifted its price target to EUR 275 from EUR 175. According to media reports, the broker pointed to progress in SAP's own AI offerings and the productive deployment of enterprise AI. Combined with customer data, that could underpin product growth and client spending, the analysts argued.
The upgrade was not the only item on Tuesday's agenda. SAP also flagged an expanded partnership with AstraZeneca, which is moving to SAP Cloud ERP Private under RISE with SAP. By SAP's account, the company-wide migration covers one of the largest SAP system landscapes in the life-sciences sector. AstraZeneca is additionally evaluating SAP Business AI for finance, supply-chain and manufacturing processes. The cloud shift extends a relationship that has run for 20 years.
SAP at a turning point? This analysis reveals what investors need to know now.
A Retail Lab and a Date for the Numbers
On the innovation front, SAP and VF Corporation opened S.Fashion at SAP's headquarters in Walldorf on Monday. The space serves as a testing ground for AI-driven retail operations, linking SAP applications with RFID data and robotics.
Investors will get the next hard read on the thesis on 28 January 2027, when SAP publishes preliminary fourth-quarter and full-year 2026 results. An analyst and investor conference and a balance-sheet press conference are scheduled alongside the release.
Ad
SAP Stock: New Analysis - 12 November
Fresh SAP information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
