(New: Headline, further chart classification of the SAP share price development, Dax development 2024, further analyst statements)

FRANKFURT (dpa-AFX) - The latest quarterly figures brought SAP a recovery rally on Tuesday. Analysts were convinced by the results and are particularly positive about the medium-term prospects.

In the late morning, the shares of Europe's largest software manufacturer rose by 3.4 percent to 171.70 euros. They were thus able to clearly recover from the correction they have undergone since the beginning of April. However, they are still some way off the record high of just over 184 euros reached at the end of March.

In the last four weeks or so, the shares have corrected around 38% of their price gains since the beginning of the year and are now finding support at this threshold, the so-called Fibonacci retracement. Thanks to the current gains, they also temporarily overcame the 50-day line, which is important for the medium-term trend, and approached the 21-day line, which points the way forward in the short term.

In 2024, SAP shares, which have the heaviest weighting in the DAX, have been among the best performers to date, gaining a good 23%. In the same period, the leading German index has risen by more than seven percent. "The Walldorf-based company's investor story is intact in all key aspects, just like the upward trend in the share price," stated capital market strategist Jürgen Molnar from broker RoboMarkets.

SAP remains on course for growth thanks to high demand for cloud products for use over the network in return for a subscription fee. In the first quarter, SAP increased its cloud sales by almost a quarter. In contrast, the sharp rise in the value of boron caused problems in terms of operating profit: The resulting higher costs for the share-based remuneration programs limited the increase.

Since the start of the recovery in fall 2022, share price gains have amounted to almost 120 percent. At that time, the Walldorf-based company had reached a positive turning point after initially accepting profit burdens with high investments in marketing, products and technology related to cloud software in order to generate future growth. Thanks to the share price recovery since then, SAP now has a market capitalization of almost 213 billion euros. This makes SAP the most valuable German company listed on the stock exchange; in the EuroStoxx 50, the leading eurozone index, it is in fifth place.

In the face of exaggerated expectations, the Walldorf-based company performed solidly, wrote analyst Balajee Tirupati from the US bank Citigroup in his initial reaction. The focus is clearly on the medium-term development. Analyst Michael Briest from the Swiss bank UBS wrote that SAP had overcome the rather high hurdle set at the start of the year. Although the targets remain unchanged, the focus is increasingly on the period after 2025.

Jefferies expert Charles Brennan noted that the start to the year had not been perfect and that the operating earnings performance had been a little disappointing. However, this was overshadowed by the continued growth momentum in the cloud business, the unexpectedly good cash inflow and the confirmed Group targets. Toby Ogg from the US bank JPMorgan also emphasized that growth at some US competitors was somewhat weaker than at Walldorf. This demonstrates the robustness of SAP's growth profile in a difficult economic environment./ajx/ag/mis/gl/ajx/mis