Zacks Investment Research Lowers SAP (SAP) to Hold
SAP (NYSE:SAP) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Tuesday.
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. Of late, growth of the company’s S/4HANA and other Cloud initiatives has been spectacular, which, in turn, has been boosting financials. However, on the flip side, the company’s shares have underperformed the industry average year to date. Intensifying competition in the IT services industry and currency fluctuations are affecting profits. Prolonged softness in certain end markets and inherent seasonality in clients’ technology spending exposes the company’s sales to risks of quarterly fluctuations.”
Several other analysts also recently weighed in on the company. Oppenheimer restated a “buy” rating and issued a $120.00 price objective on shares of SAP in a report on Tuesday, November 14th. Argus lifted their price objective on SAP from $118.00 to $130.00 and gave the company a “buy” rating in a report on Monday, October 23rd. BMO Capital Markets assumed coverage on SAP in a report on Friday, October 20th. They issued a “market perform” rating and a $115.00 price objective for the company. They noted that the move was a valuation call. DZ Bank restated a “buy” rating on shares of SAP in a report on Thursday, October 19th. Finally, Morgan Stanley reiterated a “buy” rating on shares of SAP in a report on Monday, October 16th. One investment analyst has rated the stock with a sell rating, five have issued a hold rating and fourteen have assigned a buy rating to the company. SAP presently has a consensus rating of “Buy” and a consensus price target of $106.91.
SAP (NYSE:SAP) last released its earnings results on Thursday, October 19th. The software maker reported $1.01 earnings per share for the quarter, topping the consensus estimate of $0.89 by $0.12. The business had revenue of $5.59 billion during the quarter, compared to the consensus estimate of $5.68 billion. SAP had a return on equity of 15.43% and a net margin of 15.80%. The firm’s revenue for the quarter was up 4.0% on a year-over-year basis. analysts forecast that SAP will post 4.13 EPS for the current fiscal year.
A number of institutional investors have recently made changes to their positions in the business. Harding Loevner LP grew its stake in shares of SAP by 4,590.3% during the third quarter. Harding Loevner LP now owns 267,928,144 shares of the software maker’s stock worth $402,798,000 after acquiring an additional 262,215,799 shares during the last quarter. Fisher Asset Management LLC boosted its position in SAP by 2.1% in the third quarter. Fisher Asset Management LLC now owns 6,599,155 shares of the software maker’s stock valued at $723,597,000 after buying an additional 136,874 shares during the last quarter. Sustainable Growth Advisers LP boosted its position in SAP by 8.9% in the second quarter. Sustainable Growth Advisers LP now owns 2,567,035 shares of the software maker’s stock valued at $268,691,000 after buying an additional 210,664 shares during the last quarter. Northern Trust Corp boosted its position in SAP by 2.0% in the second quarter. Northern Trust Corp now owns 1,476,441 shares of the software maker’s stock valued at $154,540,000 after buying an additional 29,555 shares during the last quarter. Finally, Neuberger Berman Group LLC boosted its position in SAP by 2.6% in the third quarter. Neuberger Berman Group LLC now owns 1,346,504 shares of the software maker’s stock valued at $147,644,000 after buying an additional 33,768 shares during the last quarter. Institutional investors and hedge funds own 3.68% of the company’s stock.
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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