SAP AG (SAP) Gets a Buy Rating from Oppenheimer


In a report released today, Brian Schwartz from Oppenheimer maintained a Buy rating on SAP AG (NYSE: SAP), with a price target of $120. The company’s shares opened today at $110.66.

Schwartz said:

“SAP reported mixed 3Q results and guidance. Positively, the cloud business results were strong and drove a better 2018 growth outlook for the business. Specifically, cloud bookings grew 36%, an above Tier-1 SaaS industry group growth rate, which is impressive given the business size. Negatively, the margins and the trend were below Street expectations which is clearly a disappointment since a faster margin improvement trend was expected given the cloud business model transition that began several years ago. We think the cause is underwhelming efficiency surrounding moving the acquired application assets onto the HANA platform and we think management needs to do a better job or reallocate more resources to this project since it is the key catalyst for a better valuation. Maintain Outperform, PT to $120 (from $130).”

According to TipRanks.com, Schwartz is a top 25 analyst with an average return of 27.3% and a 76.9% success rate. Schwartz covers the Technology sector, focusing on stocks such as Ultimate Software, Instructure Inc, and Salesforce.com.

Currently, the analyst consensus on SAP AG is a Moderate Buy with an average price target of $126.67.

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The company has a one-year high of $127.16 and a one-year low of $99.20. Currently, SAP AG has an average volume of 872.8K.

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