In a report released today, Brian Schwartz from Oppenheimer maintained a Buy rating on SAP AG (NYSE: SAP), with a price target of $130. The company’s shares closed yesterday at $121.64, close to its 52-week high of $121.95.
Schwartz noted:
“We remain long-term positive on SAP, and raise our target to $130 from $125 on positive cloud business momentum. We think the company’s technology vision for the customer experience market opportunity is underappreciated by the Street despite having good alignment with the category’s secular shifts. We detected solid demand for the cloud products in our field checks, including good momentum in deal volumes and sizes for CallidusCloud’s first quarter as part of SAP. In addition, partner checks suggest the FX fluctuations (weakening Euro) are helping pricing for SAP against the US competitors. Bottom line: Overall, we think SAP can continue showing good consistency and operating margin improvements in the upcoming reported results to support the company valuation, owing to a healthy IT spending environment and currency benefits.”
According to TipRanks.com, Schwartz is a top 25 analyst with an average return of 28.6% and a 80.4% success rate. Schwartz covers the Technology sector, focusing on stocks such as Ultimate Software, Salesforce.com, and MiX Telematics.
SAP AG has an analyst consensus of Moderate Buy, with a price target consensus of $128.
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Based on SAP AG’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $870 million. In comparison, last year the company had a net profit of $747 million.
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