The Germany-based enterprise applications company's "key enabler of success is its in-memory computing platform, HANA, and its ability to facilitate a transition to the cloud and drive an application refresh cycle," analysts said.
"Next generation applications will differentiate on data, not process, and SAP is well-positioned to capture this opportunity. However, we believe it is prudent to wait for more evidence of HANA-enabled apps before becoming constructive," analysts added.
Shares of SAP are up 1.5% to $69.65 inn pre-market trade.
Separately, TheStreet Ratings team rates SAP SE as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SAP SE (SAP) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."