SAP (SAP) Upgraded to “Buy” at Zacks Investment Research
SAP (NYSE:SAP) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Wednesday. The brokerage presently has a $125.00 price objective on the software maker’s stock. Zacks Investment Research‘s price objective would indicate a potential upside of 10.94% from the stock’s previous close.
According to Zacks, “SAP’s long-term growth drivers include resiliency of its Cloud and Software business, presence of a large business network and dominance over critical client demand areas, namely customer engagement and human capital management. 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.”
A number of other research firms have also recently issued reports on SAP. BMO Capital Markets assumed coverage on shares of SAP in a research report on Friday, October 20th. They set a “market perform” rating and a $115.00 price objective for the company. They noted that the move was a valuation call. Oppenheimer reiterated a “buy” rating and set a $120.00 price objective on shares of SAP in a research report on Tuesday, November 14th. Morgan Stanley reiterated a “buy” rating on shares of SAP in a research report on Monday, October 16th. Royal Bank of Canada restated a “neutral” rating on shares of SAP in a research report on Monday, October 16th. Finally, Stifel Nicolaus restated a “sell” rating and issued a $75.00 price target on shares of SAP in a research report on Thursday, October 12th. One research analyst has rated the stock with a sell rating, four have assigned a hold rating and fifteen have assigned a buy rating to the stock. The stock has an average rating of “Buy” and an average target price of $106.73.
SAP (NYSE:SAP) last issued its quarterly earnings results on Thursday, October 19th. The software maker reported $1.01 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.89 by $0.12. SAP had a net margin of 15.80% and a return on equity of 15.43%. The company had revenue of $5.59 billion during the quarter, compared to the consensus estimate of $5.68 billion. The business’s revenue for the quarter was up 4.0% on a year-over-year basis. research analysts forecast that SAP will post 4.13 earnings per share for the current fiscal year.
Several hedge funds have recently made changes to their positions in SAP. Davis Selected Advisers increased its holdings in SAP by 0.3% during the third quarter. Davis Selected Advisers now owns 141,865 shares of the software maker’s stock worth $15,537,000 after buying an additional 486 shares during the last quarter. Sterling Capital Management LLC increased its stake in shares of SAP by 14.9% in the third quarter. Sterling Capital Management LLC now owns 6,052 shares of the software maker’s stock worth $664,000 after purchasing an additional 785 shares in the last quarter. Neuberger Berman Group LLC increased its stake in shares of SAP by 2.6% in the third quarter. Neuberger Berman Group LLC now owns 1,346,504 shares of the software maker’s stock worth $147,644,000 after purchasing an additional 33,768 shares in the last quarter. Bank of Nova Scotia Trust Co. purchased a new position in shares of SAP in the third quarter worth about $123,000. Finally, Capital Bank & Trust Co increased its stake in shares of SAP by 5.0% in the third quarter. Capital Bank & Trust Co now owns 268,716 shares of the software maker’s stock worth $29,465,000 after purchasing an additional 12,741 shares in the last quarter. Institutional investors own 3.68% of the company’s stock.
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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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