SAP: Bryan Garnier still a buyer, but cuts target
(CercleFinance.com) - Bryan Garnier reiterates its "buy" rating on SAP but has cut its fair value for the share from 114 euros to 110 euros, in the wake of a 6% cut in adjusted EPS estimates for 2018, with estimates reduced by 4% for 2019-2020.
The broker has reduced its revenue growth assumption for the German software publisher from +7.8% to +6.5% for the current year, given management's cautious approach to software license sales.
The broker adds that while the catalyst for the group's operating margin has finally arrived, it cannot rule out better growth this year if licenses resist, as was the case in 2015-2017.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The broker has reduced its revenue growth assumption for the German software publisher from +7.8% to +6.5% for the current year, given management's cautious approach to software license sales.
The broker adds that while the catalyst for the group's operating margin has finally arrived, it cannot rule out better growth this year if licenses resist, as was the case in 2015-2017.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.