SAP (NYSE:SAP) Trading Up 7% on Analyst Upgrade

SAP SE (NYSE:SAP) was up 7% during mid-day trading on Monday after BMO Capital Markets raised their price target on the stock from $175.00 to $177.00. BMO Capital Markets currently has an outperform rating on the stock. SAP traded as high as $171.22 and last traded at $171.1340. 1,469,008 shares were traded during mid-day trading, a decline of 54% from the average session volume of 3,203,490 shares. The stock had previously closed at $160.00.

Several other analysts also recently weighed in on SAP. Barclays reduced their target price on SAP from $257.00 to $255.00 and set an “overweight” rating for the company in a report on Tuesday, July 21st. The Goldman Sachs Group reiterated a “buy” rating and issued a $265.00 price objective on shares of SAP in a research note on Wednesday, June 10th. TD Cowen lowered their target price on shares of SAP from $230.00 to $210.00 and set a “buy” rating on the stock in a research report on Friday, July 17th. HSBC upgraded shares of SAP from a “hold” rating to a “buy” rating in a research report on Wednesday, April 22nd. Finally, Santander upgraded shares of SAP from a “neutral” rating to an “outperform” rating in a research note on Friday, April 24th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and eight have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $264.83.

SAP News Summary

Here are the key news stories impacting SAP this week:

• Positive Sentiment: An analyst-driven rally appears to be the main catalyst. SAP shares moved higher following an analyst upgrade, reinforcing investor confidence in the software maker’s outlook. SAP Shares Gap Up Following Analyst Upgrade
• Positive Sentiment: SAP’s effort to “build AI at scale” for enterprise customers supports the company’s cloud-transformation strategy and could strengthen demand for its software, data, and AI offerings. SAP aims to build AI at scale for the enterprise
• Positive Sentiment: Barclays retained an “overweight” rating and continues to see substantial long-term upside, even after reducing its SAP price target from $255 to $242. Barclays SAP price-target update
• Neutral Sentiment: Approaching support deadlines for older SAP systems are prompting customers to plan ECC6 replacements and compliance-focused migrations. This may create implementation and cloud opportunities for SAP, although customers face added costs and execution complexity. Home Affairs starts scoping SAP ECC6 replacement
• Negative Sentiment: Coverage highlighting compliance gaps in SAP’s Joule AI deployments and the work customers must complete before migration underscores potential regulatory, security, and adoption risks. SAP Joule compliance concerns

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in SAP. Brighton Jones LLC grew its holdings in shares of SAP by 91.1% in the 4th quarter. Brighton Jones LLC now owns 2,633 shares of the software maker’s stock worth $648,000 after acquiring an additional 1,255 shares during the period. Baird Financial Group Inc. acquired a new position in shares of SAP during the 1st quarter worth $242,000. AQR Capital Management LLC increased its holdings in SAP by 49.0% during the 1st quarter. AQR Capital Management LLC now owns 16,309 shares of the software maker’s stock valued at $4,378,000 after acquiring an additional 5,363 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC acquired a new position in SAP during the first quarter worth about $2,681,000. Finally, Sivia Capital Partners LLC grew its position in shares of SAP by 2.3% in the second quarter. Sivia Capital Partners LLC now owns 3,050 shares of the software maker’s stock valued at $928,000 after purchasing an additional 69 shares during the last quarter.

SAP Trading Up 6.9%

The business has a 50 day moving average of $165.51 and a 200-day moving average of $183.57. The stock has a market cap of $210.16 billion, a PE ratio of 21.49, a price-to-earnings-growth ratio of 1.84 and a beta of 1.14. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.11.

SAP (NYSE:SAP) last released its quarterly earnings results on Friday, February 27th. The software maker reported $1.99 earnings per share for the quarter. The company had revenue of $11.06 billion during the quarter. SAP had a return on equity of 17.16% and a net margin of 20.88%. On average, analysts anticipate that SAP SE will post 8.26 EPS for the current year.

About SAP

SAP SE is a global enterprise software company headquartered in Walldorf, Germany. Founded in 1972 by five former IBM engineers, the company’s name is an acronym for Systeme, Anwendungen und Produkte in der Datenverarbeitung (Systems, Applications & Products in Data Processing). SAP develops and sells software and services that help organizations manage business processes across finance, human resources, procurement, manufacturing, supply chain and customer relationships.

SAP’s product portfolio spans on‑premises and cloud offerings, anchored by its enterprise resource planning (ERP) solutions such as SAP S/4HANA and the SAP HANA in‑memory database and platform.