What Are Analysts’ Recommendations for SAP Stock?

Why SAP Posted Worse-than-Expected 1Q16 Results

(Continued from Prior Part)

Wall Street analysts’ views on SAP

Earlier in this series, we discussed SAP’s fiscal 1Q16 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 13 analyst recommendations for SAP stock, there is only one “sell” recommendation. As we can see in the chart below, the analyst recommendations on the stock were mostly “buy,” representing a little less than three-fourths of the total as of April 22, 2016. The remainder were “hold” recommendations.

SAP’s price performance

SAP’s stock price movement during the past month has been positive. As of April 22, the company’s stock has risen ~7.2%. However, in the last one year, the company’s stock price has risen by 10.6%.

Analysts’ target prices

The Wall Street consensus target price for SAP is $87.50 per share as of April 22, 2016. SAP’s closing price was $80.19 on April 25, 2016.

For diversified exposure to companies in the US telecom space, you can consider investing in the Technology Select Sector SPDR ETF (XLK). XLK has ~38% exposure toward the application software space.

Browse this series on Market Realist:

• Part 1 - After Solid 2015 Performance, SAP Disappointed in 1Q16

• Part 2 - Why SAP’s Fiscal 1Q16 Results Failed to Meet Analysts’ Expectations

• Part 3 - Latin America and License Sales Weighed on SAP’s 1Q16 Results