FRANKFURT (dpa-AFX) - The latest record chase continues in the middle of the week for the shares of software manufacturer SAP. At 248.60 euros, they reached their highest price to date. Most recently, they gained around one percent, making them one of the favorites in the Dax. They seem to have left their sideways phase from the beginning of December to the beginning of January behind them.
In terms of market capitalization, SAP is by far the most valuable company in the Dax. However, a rising market capitalization is both a blessing and a curse for SAP, because the so-called capping limit for the maximum weight of each individual company in the Dax is 15 percent of the value of all 40 index members.
With the Dax's total market capitalization currently at around 1.8 trillion euros and SAP's market capitalization of 305 billion euros at its record high, the cap for SAP has already been exceeded. Fund providers and large investors may then be forced to sell SAP shares again.
Meanwhile, analysts remain confident about SAP. Knut Woller of Baader Bank expects solid performance in the final quarter of 2024. After the release of the figures, he will adjust the valuation based on the estimates for 2026, which is likely to result in an increase in the price target to 265 euros from the current 230 euros.
Toby Ogg of U.S. bank JPMorgan also sees room for further growth, with a target price of €260. Looking further ahead, he sees even greater potential for SAP, with share prices of up to €425. This would be based on an acceleration of revenue growth to 15 percent per year and an operating profit margin (adjusted EBIT margin) of around 35 percent in 2028, as he had written in an assessment available the day before./ajx/ck/jha/