SAP: Despite the warning – clear purchase recommendation

In the evening, SAP published a sales and profit warning. The market reacts clearly and punishes the SAP shares. One is apparently surprised by the clarity of the warning.

The medium-term goals of SAP will also be postponed by one to two years due to the current situation. According to this, cloud revenues should reach the 22 billion euros mark in 2025.

Not only the profit warning disappoints the market, the figures for the third quarter also fall short of expectations. Sales of 6.535 billion euros are 5 percent below estimates. The EBIT of 2.069 billion euros comes within 2 percent of the forecast.

Even after the warning, the DZ Bank analysts stick to their buy recommendation for the shares of SAP. However, the price target for the shares of the DAX group will drop from 160.00 euros to 128.30 euros.

The experts forecast earnings per share of EUR 4.81 for 2020 (old: EUR 5.06). The forecast for 2021 has been adjusted from 6.57 euros to 5.19 euros. The effects of the pandemic will therefore drag on well into the coming year and will be felt even in 2022. Then there should be earnings per share of 5.49 euros (old: 7.51 euros).

Overall, however, the analysts consider the SAP strategy to be expedient.

The shares of SAP lose today 22.4 percent to 96.96 euros. The analysts call this painful, but it should grow again.


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