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SAP: Words of encouragement after the warning

The profit warning from SAP is still preoccupying the market. The medium-term goals are taken more time; these should be achieved by 2025, previously 2023 was the target. There is unlikely to be much progress in profitability until 2023. This is considered a particular disappointment. Originally, the margins should have increased by one percentage point annually until then. The pandemic will have long-term effects on the business of the DAX group. The effects should be felt by mid-2021 – at least.

After the warning, the SAP price plummeted by up to 22 percent and slipped below the 100 euro mark.

The analysts at Independent Research increase their earnings estimate per share for 2020 from EUR 3.92 to EUR 4.03. The estimate for 2021 has been reduced from 4.72 euros to 4.66 euros.

The target price for the SAP shares was previously 160.00 euros. In the new study it sinks to 140.00 euros. As before, there is a buy recommendation for the shares of SAP.

In the long term, the growth trend at SAP remains intact from the analysts’ point of view. In their view, the latest price slide has therefore been exaggerated.

Management boards and supervisory boards at SAP seem to see it similarly. Today a number of sometimes large acquisitions from this group of people are reported.

The shares of SAP gain 2.3 percent to 99.72 euros.

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