SAP Price Target, Forecasts Raised as Berenberg Notes Disciplined Cost Control

09:24 AM EDT, 10/22/2026 (MT Newswires) -- Berenberg raised its price target and forecasts for SAP (SAP.F), highlighting the German software company's disciplined cost control and better-than-expected increase in current cloud backlog. "There was a certain amount of positive sentiment regarding SAP heading into Q3, with the shares up 12% quarter-to-date. In our view, the Q3 print that was released after US market close yesterday vindicated this constructive momentum. The critical current cloud backlog (CCB) growth exceeded both consensus and buy-side whisper expectations, and Q3 margins also beat consensus, which should alleviate some investor concerns regarding near-term AI cost inflation. On the back of Q3 backlog performance, we modestly raise our revenue forecasts," the research firm said Thursday. The research firm increased its sales projections by 0.4% for 2026, 2027 and 2028, while EBIT margin forecasts were lifted by an average of 50 basis points annually across its investment horizon. "While we expect AI-related costs and investments to exert ongoing pressure on margins, we anticipate management will maintain robust operational cost discipline to secure continuous operating margin expansion," analysts added, raising the price target to 240 euros from 205 euros, with an unchanged buy rating on the stock.