SAP SE : Good timing to anticipate a continuation of the trend
Entry price | Target | Stop-loss | Potential |
---|
€112.96 |
€122 |
€108.1 |
+8% |
---|
The timing appears opportune to go long in shares of SAP AG as we anticipate another pick-up in the underlying trend.
Summary● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
Strengths● The company returns high margins, thereby supporting business profitability.
● Sales forecast by analysts have been recently revised upwards.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The tendency within the weekly time frame is positive above the technical support level at 103 EUR
Weaknesses● The company's "enterprise value to sales" ratio is among the highest in the world.
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 36.69 times its estimated earnings per share for the ongoing year.
● The company is not the most generous with respect to shareholders' compensation.
● Analysts covering the stock have recently lowered their earnings forecast.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
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