The Latest Analyst Ratings For SAP

Across the recent three months, 5 analysts have shared their insights on SAP SAP, expressing a variety of opinions spanning from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts have set 12-month price targets for SAP, revealing an average target of $198.2, a high estimate of $215.00, and a low estimate of $185.00. This current average has increased by 16.45% from the previous average price target of $170.20.

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of SAP among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to SAP. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of SAP compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for SAP's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

For valuable insights into SAP's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on SAP analyst ratings.

All You Need to Know About SAP

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.

Understanding the Numbers: SAP's Finances

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: SAP's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 5.02%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: SAP's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 15.51%, the company may face hurdles in effective cost management.

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 is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 1.93%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 0.2, SAP adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Core of Analyst Ratings: What Every Investor Should Know

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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