SAP (SAP) Rating Lowered to Hold at Zacks Investment Research

SAP (NYSE:SAP) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday.

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 commented on the stock. Argus increased their target price on shares of SAP from $118.00 to $130.00 and gave the company a “buy” rating in a report on Monday, October 23rd. Oppenheimer reiterated a “buy” rating and issued a $120.00 target price on shares of SAP in a report on Tuesday, November 14th. BMO Capital Markets initiated coverage on shares of SAP in a report on Friday, October 20th. They issued a “market perform” rating and a $115.00 target price for the company. They noted that the move was a valuation call. Stifel Nicolaus restated a “sell” rating and set a $75.00 price target on shares of SAP in a research report on Thursday, October 12th. Finally, Berenberg Bank initiated coverage on shares of SAP in a research report on Wednesday, August 23rd. They set a “buy” rating for the company. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and fourteen have issued a buy rating to the stock. The company currently has an average rating of “Buy” and a consensus target price of $106.73.

Shares of SAP (NYSE SAP) traded down $0.72 during mid-day trading on Wednesday, hitting $115.20. 426,900 shares of the stock traded hands, compared to its average volume of 696,319. The stock has a market capitalization of $137,540.00, a P/E ratio of 32.29, a P/E/G ratio of 3.35 and a beta of 1.13. The company has a debt-to-equity ratio of 0.24, a quick ratio of 1.18 and a current ratio of 1.18. SAP has a 52 week low of $85.42 and a 52 week high of $116.90.

SAP (NYSE:SAP) last announced its earnings results on Thursday, October 19th. The software maker reported $1.01 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.89 by $0.12. The company had revenue of $5.59 billion during the quarter, compared to the consensus estimate of $5.68 billion. SAP had a net margin of 15.80% and a return on equity of 15.43%. The company’s quarterly revenue was up 4.0% on a year-over-year basis. equities research analysts predict that SAP will post 4.13 earnings per share for the current year.

A number of institutional investors and hedge funds have recently bought and sold shares of SAP. Signature Estate & Investment Advisors LLC bought a new position in SAP during the third quarter valued at about $100,000. Parallel Advisors LLC boosted its position in SAP by 32.4% during the second quarter. Parallel Advisors LLC now owns 957 shares of the software maker’s stock worth $101,000 after purchasing an additional 234 shares during the period. Bank of Nova Scotia Trust Co. bought a new position in SAP during the third quarter worth about $123,000. IFP Advisors Inc boosted its position in SAP by 29.4% during the second quarter. IFP Advisors Inc now owns 1,456 shares of the software maker’s stock worth $152,000 after purchasing an additional 331 shares during the period. Finally, Fiduciary Trust Co. bought a new position in SAP during the second quarter worth about $157,000. Institutional investors own 3.66% of the company’s stock.

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About SAP

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).

Analyst Recommendations for SAP (NYSE:SAP)

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