SAP’s share value is still flying high, with good news soaring in two weeks after its earnings report. Tokyo-based financial consultancy Nomura Holdings repeated its Buy rating for SAP’s stock on Monday, as Paris-based Société Générale’s analysts did within days of SAP’s April 19 announcement.
Both firms now have a price target of $88.31 on the stock.
“SAP is a great investment idea as the current stock price of $78.87 is lower than the calculated intrinsic value of $83.56,” research analyst Vinayak Maheswaran said Thursday on Seeking Alpha. “SAP has a strong balance sheet and great revenue numbers over the last five years.”
Maheswaran was encouraged by SAP’s:
- Greater dividend to shareholders
- Long-term growth prospects
- Stock price rising above the 20- and 50-day moving averages
“I have always been a firm believer in innovation,” Maheswaran said. “The recent pullback that we have seen in the stock price over the long term is a good opportunity for investors to buy more SAP stock.”
Ten investment banks have a Buy rating on SAP shares, according to Zolmax News, while eight have a Hold, and two rate the stock as a Sell. But there are lots of reasons for SAP investors to be optimistic.
“Everyone else is showing negative growth rates,” SAP co-CEO Jim Hagemann Snabe said on April 19, when the company announced its 13th consecutive quarter of double-digit growth. “We’re winning in the market.”
Follow Derek on Twitter: @DKlobucher
“SAP AG Receives Buy Rating from Nomura (SAP)” in Zolmax News
“Dividend Discount Model Reveals SAP AG Is Undervalued” in Seeking Alpha
“VIDEO: ‘A Radical Transformation’ in IT Buoys SAP’s Q1 Results” in SAP Business Trends