Berenberg Bank Remains a Buy on SAP SE (SAP)

​SAP SE (NYSE:SAP) is one of the Profitable SaaS Companies for 2026. On February 10, Nay Soe Naing from Berenberg Bank reiterated a Buy rating on the stock with a €250 price target. The bullish sentiment comes amidst growing concerns regarding GenAI disrupting the SaaS business model, which has led to a valuation reset within the software sector.

​The share price of SAP SE (NYSE:SAP) has fallen more than 14.72% over the past month. Earlier on February 4, Frederic Boulan from Bank of America Securities released a research note highlighting SAP as an attractive investment amidst a valuation reset. He noted,

​“the space is now trading at 13.1x EV/EBITDA vs 5y average of 21x. U.S. software compressed 35% in the past 6 months from 32.3x to 21x.”

​SAP has also undergone significant repricing and trades at 20.7x 2027 earnings, down from 34x a year ago. Regardless, Boulan has a Buy rating on SAP SE (NYSE:SAP) with a €302 price target. He noted that the current prices overly discount the company’s strengths and growth potential. BofA used a reverse discounted cash flow model with unchanged 2026–2030 forecasts to find that the current price implies a -3% revenue CAGR post-2030, a 14% revenue drop by 2035, and 20% EBIT decline.

​BofA finds the current valuation unrealistic as it assumes customer churn acceleration and a halt to on-premise to cloud migration, which the bank notes to be “unlikely.” Analyst Boulan highlighted that software companies such as SAP SE (NYSE:SAP) have strong domain expertise and complex business integrations, which make them less vulnerable to being replaced by AI tools.

​SAP SE (NYSE:SAP) develops enterprise application software, primarily ERP systems that centralize data management and streamline business processes like finance, supply chain, and HR.

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Disclosure: None. This article is originally published at Insider Monkey.