Zacks Investment Research Upgrades SAP (SAP) to “Hold”

Zacks Investment Research upgraded shares of SAP (NYSE:SAP) from a sell rating to a hold rating in a research report released on Wednesday morning.

According to Zacks, ” SAP is one of the largest independent software vendors  and the leading provider of enterprise resource planning (ERP) software. Solid adoption of SAP’s Human Capital management (HCM) solution, SuccessFactors Employee Central and S/4HANA platform are expected to increase new cloud bookings, consequently bolstering top line. The company constantly upgrades the existing products and launches fresh ones to expand its customer base, consequently offering a competitive edge over peers. However, inherent seasonality in clients’ technology spending exposes the company’s sales to risks of quarterly fluctuations. Currency fluctuations are also hurting its financial performance, particularly the Americas region. Notably, shares of SAP have underperformed the industry over the one past year.”

SAP has been the topic of a number of other research reports. Jefferies Financial Group started coverage on SAP in a research note on Friday, June 1st. They set a buy rating and a $140.00 price objective on the stock. Oppenheimer raised their price objective on SAP from $125.00 to $130.00 and gave the stock an outperform rating in a research note on Wednesday, July 18th. ValuEngine upgraded SAP from a hold rating to a buy rating in a research note on Tuesday, July 10th. Deutsche Bank restated a buy rating on shares of SAP in a research note on Friday, July 20th. Finally, DZ Bank restated a buy rating on shares of SAP in a research note on Wednesday, June 27th. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and eleven have issued a buy rating to the company’s stock. SAP currently has an average rating of Buy and a consensus target price of $113.70.

SAP stock opened at $121.40 on Wednesday. SAP has a one year low of $99.20 and a one year high of $122.74. The company has a debt-to-equity ratio of 0.25, a quick ratio of 1.00 and a current ratio of 1.00. The firm has a market cap of $148.71 billion, a price-to-earnings ratio of 28.30, a P/E/G ratio of 3.76 and a beta of 1.22.

SAP (NYSE:SAP) last posted its quarterly earnings data on Thursday, July 19th. The software maker reported $0.98 EPS for the quarter, hitting the Zacks’ consensus estimate of $0.98. SAP had a return on equity of 18.07% and a net margin of 17.92%. The firm had revenue of $6 billion for the quarter, compared to analyst estimates of $5.90 billion. During the same quarter last year, the company earned $0.94 EPS. The company’s revenue was up 3.8% on a year-over-year basis. equities research analysts expect that SAP will post 4.39 earnings per share for the current fiscal year.

Institutional investors and hedge funds have recently modified their holdings of the company. Signature Estate & Investment Advisors LLC bought a new position in shares of SAP in the 2nd quarter valued at $102,000. Vigilant Capital Management LLC bought a new position in shares of SAP in the 2nd quarter valued at $149,000. Icon Wealth Partners LLC increased its stake in shares of SAP by 35.2% in the 1st quarter. Icon Wealth Partners LLC now owns 1,796 shares of the software maker’s stock valued at $189,000 after purchasing an additional 468 shares during the last quarter. Summit Trail Advisors LLC increased its stake in shares of SAP by 11,404.8% in the 1st quarter. Summit Trail Advisors LLC now owns 190,750 shares of the software maker’s stock valued at $191,000 after purchasing an additional 189,092 shares during the last quarter. Finally, BSW Wealth Partners bought a new position in shares of SAP in the 2nd quarter valued at $200,000. Institutional investors own 4.53% of the company’s stock.

SAP Company Profile

SAP SE operates as an enterprise application software, and analytics and business intelligence company worldwide. It offers SAP HANA, which enables businesses to process and analyze live data; SAP Data Hub, a solution that enables businesses to manage data from various sources; SAP Cloud Platform, which enables businesses to connect and integrate applications; SAP BW/4HANA, a data warehouse solution; SAP Leonardo, a system that enables customers to make business sense and opportunity of disruptive technologies; and SAP Analytics Cloud, which leverages the intersection of business intelligence, planning, and predictive analytics.

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