Forecasting The Future: 5 Analyst Projections 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.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $216.8, with a high estimate of $227.00 and a low estimate of $210.00. This upward trend is evident, with the current average reflecting a 8.4% increase from the previous average price target of $200.00.

Diving into Analyst Ratings: An In-Depth Exploration

The standing of SAP among financial experts becomes clear with a thorough analysis 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 adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to SAP. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of SAP compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for SAP's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of SAP's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on SAP analyst ratings.

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 Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: SAP's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 8.06%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in 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 -10.3%, the company may face hurdles in effective cost management.

Return on Equity (ROE): SAP's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -1.92%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): SAP's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -1.17%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: SAP's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.22.

Analyst Ratings: Simplified

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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