SAP AG

SAP
Real-time TRADEGATE AG - 08/22 03:59:57 pm
107.91EUR
-1.41%

The technical configuration is positive

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Ulrich Ebensperger
Financial Analyst

Strategy published on : 08/08/2019 | 03:08

long trade
Live

Entry price : 108€
Target : 124.38€
Stop-loss : 90.96€
Potential : 15.17%

The current trading zone is interesting to the point that investors should pay attention to the stock and anticipate a return of the underlying upward trend.
Investors have an opportunity to buy the stock and target the € 124.38.

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 share is getting closer to its long-term support in weekly data, at EUR 103, which offers good timing for buyers.

● The company returns high margins, thereby supporting business profitability.

● The group usually releases upbeat results with huge surprise rates.

● Over the past year, analysts have regularly revised upwards their sales forecast for the company.

● Analysts covering this company mostly recommend stock overweighting or purchase.

● The stock is in a well-established, long-term rising trend above the technical support level at 103 EUR


Weaknesses

● Based on current prices, the company has particularly high valuation levels.

● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 36.67 times its estimated earnings per share for the ongoing year.

● The company is not the most generous with respect to shareholders' compensation.

● For the last four months, EPS estimates made by Thomson-Reuters analysts have been revised downwards.

● 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.

Zonebourse.com 2019
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