Enterprise software provider SAP SE (DE:SAPG) (SAP) continues to witness strong sales momentum as its ‘RISE with SAP’ offering gains increasing market traction. Consequently, the company has raised its 2021 outlook. With more organizations adopting SAP’s cloud solutions, we believe the stock has plenty more upside to deliver. Let’s discuss.Based in Walldorf, Germany, SAP SE (SAP) is an enterprise application software company known for its ERP software. With more companies adopting SAP’s cloud portfolio to transform their business processes, its cloud revenue growth has accelerated significantly. The stock has gained 10.7% year-to-date and 14.4% over the past six months.
Expanded strategic collaboration with Google (NASDAQ:GOOGL) Cloud and significant sales growth stemming from its Qualtrics business segment in the second quarter of 2021 should be a boon for SAP. Its S/4HANA enterprise resource planning suite attracted more than 600 new customers, taking its total adoption to more than 17,000 customers in its last reported quarter.
Furthermore, a substantial contribution from its Sapphire Ventures and growing adoption of its ‘RISE with SAP’ business offering should position SAP to maintain its momentum and deliver solid returns in the near term.