Movement Alert|SAP SE Falls 3.01% in Regular Trading, Multiple Investment Banks Cut Target Prices Amid Software Sector Pressure

Market Focus
Jul 20

On July 20, SAP SE fell 3.01% in regular trading, trading at $154.57/share, with turnover of $75.73 million. The decline was driven by multiple investment banks cutting their target prices on SAP and broader software sector weakness.

UBS lowered its target price from 205 euros to 164 euros, while Wells Fargo slashed its target from 250 euros to 180 euros. Industry analysts warned that software vendors including SAP may face risks of cloud backlog shortfalls and weaker-than-expected new subscription sales, as enterprise IT budgets are being redirected toward hardware infrastructure amid the AI spending wave. Peer stocks also declined, with Adobe falling 3.4% and Salesforce dropping 1.0% on the same day.

SAP is scheduled to report quarterly earnings on July 23, with consensus expectations calling for revenue of 9.861 billion euros, representing 8.65% year-over-year growth. The market remains cautious heading into the report given concerns that leading indicators such as cloud bookings could disappoint.

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