Beyond The Numbers: 4 Analysts Discuss SAP Stock
SAP (NYSE:SAP) has been analyzed by 4 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 3 | 0 | 0 | 0 |
| Last 30D | 0 | 2 | 0 | 0 | 0 |
| 1M Ago | 1 | 1 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
Insights from analysts' 12-month price targets are revealed, presenting an average target of $322.0, a high estimate of $330.00, and a low estimate of $308.00. Witnessing a positive shift, the current average has risen by 2.55% from the previous average price target of $314.00.
Investigating Analyst Ratings: An Elaborate Study
The analysis of recent analyst actions sheds light on the perception of SAP by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Keith Bachman | BMO Capital | Raises | Outperform | $330.00 | $320.00 |
| Patrick Walravens | JMP Securities | Maintains | Market Outperform | $330.00 | $330.00 |
| Joseph Bonner | Argus Research | Maintains | Buy | $320.00 | $320.00 |
| Raimo Lenschow | Barclays | Raises | Overweight | $308.00 | $286.00 |
Key Insights:
- Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to SAP. This offers insight into analysts' perspectives on the current state of the company.
- Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of SAP compared to the broader market.
- Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of SAP's stock. This examination reveals shifts in analysts' expectations over time.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into SAP's market standing. Stay informed and make well-considered decisions with our Ratings Table.
Stay up to date on SAP analyst ratings.
Delving into SAP's Background
Founded in Germany in 1972 by former IBM employees, SAP is the world's largest provider of enterprise application software. Known as the leader in enterprise resource planning software, SAP's portfolio also includes software for supply chain management, procurement, travel and expense management, and customer relationship management, among others. The company operates in more than 180 countries and has more than 400,000 customers, approximately 80% of which are small to medium-size enterprises.
SAP: A Financial Overview
Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.
Revenue Growth: SAP displayed positive results in 3M. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 12.09%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: SAP's net margin is impressive, surpassing industry averages. With a net margin of 19.75%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): SAP's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 3.91%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): SAP's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.38% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: SAP's debt-to-equity ratio is below the industry average at 0.22, reflecting a lower dependency on debt financing and a more conservative financial approach.
What Are Analyst Ratings?
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.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.