SAP (DE0007164600) presented the figures for the second quarter on Monday and thereby fully met market expectations; The software developer from Walldorf also adheres to the annual forecasts (which were lowered in April). The announcement that the US company Qualtrics, which had been acquired for around $ 8 billion in 2019, would be floated on the stock exchange and remain the majority shareholder was a positive surprise. Qualtrics specializes in market research; Customers should benefit from networking with the SAP platform geared towards corporate management. According to the analysts of Société Générale, despite the enormous recovery since the corona lows, the stock is still trading with an average 18 percent discount to European peers. You are raising the 12-month price target from 121 to 173 euros – a good 33 percent potential from the current price.
Discount strategies with 8 percent buffer (September) or 14 percent buffer (December)
If you assume that there is only a small setback potential in the short term, you can use the JP Morgan discounter (ISIN DE000JM2XVP6) for an increase in value of EUR 2.31 or 11 percent p.a. achieve if the share closes on September 18, 20 at least at the level of the cap of EUR 130 otherwise there is a cash settlement in the amount of the closing price.
Morgan Stanley’s (DE000MC2LN5) somewhat more defensive strategy offers a 14 percent security buffer. With a purchase price of EUR 120.40, investors realize a return of EUR 4.60 or 9 percent p.a., provided the share closes on December 18, 20 above the cap of EUR 125; otherwise they will receive a cash settlement.
Income strategy with 11 percent interest (March)
If you prefer to receive high coupons instead of a discounted entry, you could buy the BNP Reverse Convertible with the ISIN DE000PX8W580: It pays a fixed coupon of 11 percent p.a. regardless of the share price at the end of the term (3/25/21). out. Due to the entry price below par, the effective return is 12.3 percent p.a., should the SAP share be quoted on March 19, 2019 at least at 138 euros. At prices below this, investors receive the delivery of 7 shares (fractions in cash).
Certificate Report conclusion: Those who shy away from a direct investment in the SAP share at the current price level can already benefit from a sideways movement with the discount certificates and the Reverse Convertible – excessively high security buffers are generally not particularly attractive due to the moderate fluctuation range of the share from a return perspective .
This article does not constitute a recommendation to buy or sell SAP shares or investment products in SAP shares. No liability is assumed for the correctness of the data.
Author: Thorsten Welgen
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