Oppenheimer analyst Brian Schwartz maintained a Buy rating on SAP AG (SAP) today and set a price target of $120. The company’s shares opened today at $103.37.
Schwartz said:
“SAP’s business trends and outlook looked softer in 4Q:2018 than displayed in recent quarters as the company continues wrestling with achieving the margin synergies from the cloud transition while projecting a leading technology vision through an acquisition-driven and internal R&D product strategy. Positively, a large restructuring announcement better aligns the engineering and go-to-market efforts around solving more strategic digital intelligent enterprise initiatives, and is a lever for future margin improvements. Last, the company updated and initiated appropriate FY:2020 and medium-term financials targets which lends support to valuation. Bottom Line: We see 4Q as a transitory quarter for SAP from distraction owing to the Qualtrics deal, and the issues are mostly its own and not a harbinger of bad things to come for the broader SaaS/Applications group.”
According to TipRanks.com, Schwartz is a top 25 analyst with an average return of 26.1% and a 76.1% 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 $125.50.
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Based on SAP AG’s latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $1.13 billion. In comparison, last year the company had a net profit of $2.19 billion.
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