SAP SE (SAP) Lifted to “Buy” at Zacks Investment Research
SAP SE (NYSE:SAP) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Monday. The firm currently has a $127.00 price target on the software maker’s stock. Zacks Investment Research‘s price objective would indicate a potential upside of 13.36% from the company’s previous close.
According to Zacks, “SAP’s third-quarter 2017 earnings beat the Zacks Consensus Estimate by 4.4%, and surged 35% from the year-ago tally. A flourishing Cloud subscriptions and support business, along with consistent strength in Cloud and software business, drove earnings. SAP’s Customer Engagement and Commerce solutions once again achieved double-digit growth in new cloud bookings as well as software revenue. Going forward, SAP remains bullish about the prospects of its cloud business. This apart, exceptional traction of SAP S/4 HANA — the company’s proprietary offering — has been fueling growth. Moreover, robust traction of human capital management is adding to the sales momentum. Additionally, continuous expansion of SAP's business network is supplementing key financials. However, stiff competition in the IT services industry and dull prospects for global IT industry may weigh on the company’s profits.”
Several other research firms have also weighed in on SAP. Royal Bank Of Canada reaffirmed a “neutral” rating on shares of SAP SE in a report on Monday, October 16th. BMO Capital Markets upped their target price on shares of SAP SE from $105.00 to $110.00 and gave the stock a “market perform” rating in a report on Friday, July 21st. DZ Bank AG reaffirmed a “buy” rating on shares of SAP SE in a report on Wednesday, June 28th. BidaskClub lowered shares of SAP SE from a “strong-buy” rating to a “buy” rating in a report on Monday, July 24th. Finally, Morgan Stanley reaffirmed a “buy” rating on shares of SAP SE in a report on Monday, October 16th. One analyst has rated the stock with a sell rating, five have issued a hold rating and fourteen have given a buy rating to the company. The company presently has a consensus rating of “Buy” and an average price target of $97.94.
SAP SE (NYSE:SAP) traded up 0.63% on Monday, hitting $112.74. 419,862 shares of the stock were exchanged. The stock has a market cap of $135.16 billion, a PE ratio of 32.69 and a beta of 1.10. The company’s 50 day moving average is $110.04 and its 200 day moving average is $105.48. SAP SE has a 1-year low of $80.93 and a 1-year high of $113.64.
SAP SE (NYSE:SAP) last announced its quarterly earnings results on Thursday, October 19th. The software maker reported $1.01 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.89 by $0.12. The firm had revenue of $5.59 billion for the quarter, compared to analyst estimates of $5.68 billion. SAP SE had a net margin of 15.80% and a return on equity of 15.55%. The business’s revenue for the quarter was up 4.0% compared to the same quarter last year. On average, equities research analysts expect that SAP SE will post $4.89 earnings per share for the current year.
SAP SE declared that its board has initiated a share buyback plan on Thursday, July 20th that allows the company to repurchase outstanding shares. This repurchase authorization allows the software maker to reacquire shares of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s leadership believes its stock is undervalued.
Institutional investors have recently added to or reduced their stakes in the business. Parallel Advisors LLC grew its position in SAP SE by 32.4% in the second quarter. Parallel Advisors LLC now owns 957 shares of the software maker’s stock valued at $101,000 after acquiring an additional 234 shares during the last quarter. Marshall Wace North America L.P. bought a new position in SAP SE in the first quarter valued at about $2,053,000. FMR LLC grew its position in SAP SE by 6,475.0% in the second quarter. FMR LLC now owns 396,409 shares of the software maker’s stock valued at $41,493,000 after acquiring an additional 390,380 shares during the last quarter. Martin Investment Management LLC grew its position in SAP SE by 2.2% in the second quarter. Martin Investment Management LLC now owns 105,451 shares of the software maker’s stock valued at $11,038,000 after acquiring an additional 2,310 shares during the last quarter. Finally, Westwood Holdings Group Inc. grew its position in SAP SE by 6.0% in the first quarter. Westwood Holdings Group Inc. now owns 5,515 shares of the software maker’s stock valued at $541,000 after acquiring an additional 310 shares during the last quarter. Hedge funds and other institutional investors own 3.56% of the company’s stock.
SAP SE Company Profile
SAP SE (SAP) is a software and service provider. The Company offers enterprise application software. The Company operates through two segments: Applications, Technology & Services segment, and the SAP Business Network segment. The Applications, Technology & Services segment is engaged in the sale of software licenses, subscriptions to its cloud applications, and related services (primarily support services and various professional services, and support services, as well as implementation services of its software products and education services on the use of its products).
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