A Closer Look at 6 Analyst Recommendations For SAP

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SAP SAP has been analyzed by 6 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 2 2 2 0 0
Last 30D 0 1 0 0 0
1M Ago 0 0 1 0 0
2M Ago 0 0 0 0 0
3M Ago 2 1 1 0 0

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $200.5, with a high estimate of $215.00 and a low estimate of $185.00. Observing a 15.68% increase, the current average has risen from the previous average price target of $173.33.

Breaking Down Analyst Ratings: A Detailed Examination

The analysis of recent analyst actions sheds light on the perception of SAP by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Raimo Lenschow Barclays Raises Overweight $212.00 $189.00
Keith Bachman BMO Capital Raises Market Perform $215.00 $195.00
Raimo Lenschow Barclays Raises Overweight $189.00 $156.00
Mohammed Moawalla Goldman Sachs Raises Buy $207.00 $185.00
Keith Bachman BMO Capital Raises Market Perform $195.00 $147.00
Mohammed Moawalla Goldman Sachs Raises Buy $185.00 $168.00

Key Insights:

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  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to SAP. This insight gives a snapshot of analysts' perspectives on the current state of the company.
  • Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of SAP compared to the broader market.
  • Price Targets: Analysts provide insights into price targets, offering estimates for the future value of SAP's stock. This comparison reveals trends in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of SAP's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on SAP analyst ratings.

Get to Know SAP Better

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.

Unraveling the Financial Story of SAP

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Revenue Growth: Over the 3 months period, SAP showcased positive performance, achieving a revenue growth rate of 5.02% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 15.51%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): SAP's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 3.05%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): SAP's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 1.93%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: SAP's debt-to-equity ratio is below the industry average. With a ratio of 0.2, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

What Are Analyst Ratings?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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

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