SAP (NYSE: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 report released on Wednesday, December 20th.

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.”

Other research analysts have also recently issued research reports about the company. Royal Bank of Canada reissued a “neutral” rating on shares of SAP in a research note on Monday, October 16th. Argus increased their target price on SAP from $118.00 to $130.00 and gave the company a “buy” rating in a research note on Monday, October 23rd. Oppenheimer reissued a “buy” rating and issued a $120.00 target price on shares of SAP in a research note on Tuesday, November 14th. DZ Bank reaffirmed a “buy” rating on shares of SAP in a research note on Thursday, October 19th. Finally, Morgan Stanley reaffirmed a “buy” rating on shares of SAP in a research note on Monday, October 16th. One research analyst has rated the stock with a sell rating, six have given a hold rating and thirteen have assigned a buy rating to the stock. The company currently has an average rating of “Buy” and an average target price of $102.55.

Shares of SAP (NYSE:SAP) opened at $109.64 on Wednesday. The stock has a market capitalization of $134,710.00, a price-to-earnings ratio of 29.71, a price-to-earnings-growth ratio of 3.13 and a beta of 1.14. SAP has a 12-month low of $88.67 and a 12-month high of $116.90. The company has a current ratio of 1.18, a quick ratio of 1.18 and a debt-to-equity ratio of 0.24.

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

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

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SAP Company Profile

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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