A Glimpse Into The Expert Outlook On SAP Through 4 Analysts

SAP SAP has been analyzed by 4 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for SAP, presenting an average target of $194.0, a high estimate of $207.00, and a low estimate of $185.00. Witnessing a positive shift, the current average has risen by 18.29% from the previous average price target of $164.00.

Analyzing Analyst Ratings: A Detailed Breakdown

The standing of SAP among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to SAP. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of SAP compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for SAP's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of SAP's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on SAP analyst ratings.

All You Need to Know About SAP

Founded in 1972 by former IBM employees, SAP provides database technology and enterprise resource planning software to enterprises around the world. Across more than 180 countries, the company serves 440,000 customers, approximately 80% of which are small- to medium-size enterprises.

Financial Insights: SAP

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: SAP's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2023, the company achieved a revenue growth rate of approximately 3.57%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: SAP's net margin excels beyond industry benchmarks, reaching 16.5%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 3.01%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): SAP's ROA stands out, surpassing industry averages. With an impressive ROA of 1.86%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: SAP's debt-to-equity ratio is below the industry average. With a ratio of 0.25, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.