Wall Street analyst views on SAP
Previously in this series, we discussed analyst expectations for SAP’s (SAP) soon-to-be-announced fiscal 2Q16 results. In the application software space, apart from SAP, Adobe (ADBE), Salesforce (CRM), Workday (WDAY), and Splunk (SPLK) are prominent players. Let’s take a look at select market-centric views and metrics from SAP.
Of the 14 analyst recommendations for SAP stock, there is only one “sell” recommendation. As we can see in the chart below, analyst recommendations on the stock were mostly “buys,” representing approximately 64% as of July 12, 2016. The remainder were “hold” recommendations.
Price performance and analyst target prices
SAP’s stock price movement during the past month has been negative. As of July 11, the company’s stock fell by ~2.4%. However, in the past year, the company’s stock price has risen by ~6%.
The Wall Street consensus target price for SAP was $87.32 per share as of July 12, 2016. SAP’s closing price was $78.31 on July 12, 2016.
In mid-June 2016, Jeffries downgraded SAP’s stock from “hold” to “underperform.” Industry analysts feel that the company’s suggestion of not letting S4 run on its peer company’s platform is a concern. Raising this issue of S4 HANA migration, Jeffries pointed out that “S4 upgrades require database migration, which is a big alongside the usual trials and tribulations of ERP platform upgrades.”