JPMorgan cuts SAP to Neutral as cloud backlog growth slows; shares dip
#JPMorgan #SAP #Neutral #cloud backlog #growth slowdown #shares dip #downgrade
📌 Key Takeaways
- JPMorgan downgraded SAP's stock rating from Overweight to Neutral.
- The downgrade was driven by slowing growth in SAP's cloud backlog.
- SAP's share price declined following the analyst action.
- The slowdown suggests potential challenges in SAP's cloud transition momentum.
🏷️ Themes
Stock Downgrade, Cloud Growth
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try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Traders placed $580M in oil bets minutes before Trump’s Iran post Trump delays strikes on Iranian power plants, says talks with Tehran "very good" Wall Street averages end more than 1% higher on Middle East de-escalation hopes Oil prices jump over 4% after Iran refutes US talks claims (South Africa Philippines Nigeria) JPMorgan cuts SAP to Neutral as cloud backlog growth slows; shares dip By Author Vahid Karaahmetovic Stock Markets Published 03/24/2026, 04:25 AM JPMorgan cuts SAP to Neutral as cloud backlog growth slows; shares dip 0 SAPG -4.50% SAP 1.34% Investing.com -- JPMorgan has downgraded SAP (NYSE: SAP ) (ETR: SAPG ) to Neutral from Overweight, pointing to a weaker near-term setup as growth in its cloud backlog continues to slow and new strategic shifts add uncertainty. It also reduced its price target to €175 from €260. U.S.-listed shares in SAP fell nearly 5% in premarket trading by 04:33 ET. Track the hottest analyst moves on InvestingPro - get up to 50% off JPMorgan analysts said their previous bullish stance on SAP was based on “accelerating revenue growth and significant margin expansion,” but “the picture for performance has shifted” as the company faces multiple headwinds. A central concern is the deceleration in SAP’s current cloud backlog , which the bank expects to continue as the base of migrated customers matures. The company’s backlog growth peaked in 2024 and has since slowed, with further moderation expected into 2026. "In a market that now demands acceleration to counter prevailing software bear arguments, deceleration is unlikely to support near-term stock performance," analysts led by Toby Ogg said in a note. Beyond backlog trends, the team flagged a potential shift in SAP’s business model toward a consumption or outcome-based structure. This transition, while seen as necessary, could introduce volatility as revenue becomes more usage-driven and less predictable. Such a shift may al...
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